New UK GAAP and tax on financial instruments

For periods of account beginning on or after 1 January 2015 companies preparing financial statements under UK GAAP will have to account under FRS 101 FRS 102 or – in the case of smaller companies – under the FRSSE. (The changes under review here do not relate to the FRSSE and this is not considered further.)

Taxing financial instruments: accounts-based regimes

The corporation tax regimes for loan relationships and derivative contracts in CTA 2009 Parts 5 to 7 are accounts-based. The general computational rule is to determine profits and losses chargeable to corporation tax as income under the regimes by reference to the ‘amounts recognised in...