Graham Iversen reviews the potential impact of the Finance Bill 2011 provisions
Schedule 1 to the Finance Bill 2011 proposes to revise the loan relationships and derivative contracts rules which apply where amounts are ‘not fully recognised for accounting purposes’. The changes follow HMRC’s Technical Notes of July and December 2010. This article will consider the background to the changes and highlight the scope of the new rules. It will focus on the loan relationships legislation although comparable points can be made about the derivative contracts legislation.
Background
Many readers will be familiar with the background to the proposed changes but for those who are not here is a brief summary.
Broadly speaking of course the calculation of a company’s profits and losses from its loan relationships will generally follow its accounts (at least where its accounts are prepared in accordance with UK GAAP or...
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Graham Iversen reviews the potential impact of the Finance Bill 2011 provisions
Schedule 1 to the Finance Bill 2011 proposes to revise the loan relationships and derivative contracts rules which apply where amounts are ‘not fully recognised for accounting purposes’. The changes follow HMRC’s Technical Notes of July and December 2010. This article will consider the background to the changes and highlight the scope of the new rules. It will focus on the loan relationships legislation although comparable points can be made about the derivative contracts legislation.
Background
Many readers will be familiar with the background to the proposed changes but for those who are not here is a brief summary.
Broadly speaking of course the calculation of a company’s profits and losses from its loan relationships will generally follow its accounts (at least where its accounts are prepared in accordance with UK GAAP or...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
