Page 48 - P6 Slide Taxation - Lecture Day 6 - Groups, Interest And Practice Questions

S 24J – during term of instrument

Interest is calculated iro an accrual period and spread over the term of the

instrument on a compounding accrual basis

Term = period from date of issue/transfer of instrument until redemption of
instrument

Accrual period = if instrument with regular payment periods < 12 months, then use
those regular interval

Otherwise any 12 month period chosen by taxpayer

Max accrual period = Applied constantly

12 months throughout term of

instrument

Example: if payments made monthly, accrual period = a month