HMRC is consulting until 30 October 2015 on draft amendments to the four sets of regulations which set out the tax rules on accounting for profits and losses on loan relationships and derivative contracts, to reflect legislation in Finance (No. 2) Bill 2015 (cls 31, 33 and Sch 7).
Exchange Gains and Losses (Bringing into Account Gains and Losses) Regulations, SI 2002/1970
Loan Relationships and Derivative Contracts (Disregard and Bringing into Account Profits and Losses) Regulations, SI 2004/3256;
Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations, SI 2004/3271; and
Loan Relationships and Derivative Contracts (Exchange Gains and Losses using Fair Value Accounting) Regulations, SI 2005/3422.
The majority of changes are minor adjustments and changes in terminology. Broadly, the amendments: prevent double accounting under the rules for both loan relationships derivative contracts; simplify the special rules on hedge accounting and prevent fair value hedges being brought into account on disposal of a foreign branch; and ensure that ‘own credit risk’ adjustments arising from an accounting change will be spread over five years. See www.bit.ly/1KVkXB7.
HMRC is consulting until 30 October 2015 on draft amendments to the four sets of regulations which set out the tax rules on accounting for profits and losses on loan relationships and derivative contracts, to reflect legislation in Finance (No. 2) Bill 2015 (cls 31, 33 and Sch 7).
Exchange Gains and Losses (Bringing into Account Gains and Losses) Regulations, SI 2002/1970
Loan Relationships and Derivative Contracts (Disregard and Bringing into Account Profits and Losses) Regulations, SI 2004/3256;
Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations, SI 2004/3271; and
Loan Relationships and Derivative Contracts (Exchange Gains and Losses using Fair Value Accounting) Regulations, SI 2005/3422.
The majority of changes are minor adjustments and changes in terminology. Broadly, the amendments: prevent double accounting under the rules for both loan relationships derivative contracts; simplify the special rules on hedge accounting and prevent fair value hedges being brought into account on disposal of a foreign branch; and ensure that ‘own credit risk’ adjustments arising from an accounting change will be spread over five years. See www.bit.ly/1KVkXB7.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")