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Detail of outcome
You can read the summary of the responses to the consultation on the tax responses required because of changes in accounting for leases in International Financial Reporting Standard (IFRS 16).
This also sets out the government’s proposed changes to the legislation, which take those responses into account.
The government has also published draft legislation setting out the changes required for the accounting changes.
Legislation is expected to be included in the next Finance Bill to be effective for accounting periods beginning on or after 1 January 2019. Some changes to the long funding lease rules will be effective for leases entered into on or after 1 January 2019.
This consultation looks at the accountancy and tax interaction of leasing; in particular in relation to plant or machinery, but also in relation to the wider impact of the accounting change.