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Loan relationships and derivative contracts: HMRC update

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HMRC have rescheduled plans to introduce the amendments to CTA 2009 that will be required to take account of changes to accounting standards arising from International Financial Reporting Standard 9 (IFRS 9).

‘It appears increasingly likely that IFRS 9 as a whole won't be finalised until the second half of 2012, that mandatory application may now be delayed until 1 January 2015, and that the timescale for European Union endorsement will be delayed as a consequence,’ HMRC said.

‘In view of this, HMRC considers that it makes sense not to proceed with laying regulations by the end of 2011, as originally intended. Instead, they propose to issue a further draft of regulations later in 2011, or early in 2012, together with a Tax Impact and Information Note.’

The update published on 13 July also sets out HMRC’s response to comments on draft regulations set out in Discussion Paper 3, issued in October 2010.

Comments are invited by 1 September 2011 on whether delaying the making of the regulations will have any impact on companies waiting to adopt the new accounting standards.