Policy paper

Corporation Tax: accounting for credit losses

This Tax Information and Impact Note is about the tax treatment of credit losses and amends the Change of Accounting Practice Regulations 2004 (SI 2004/3271).

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The accounting standard covering financial instruments is changing with the introduction of International Financial Reporting Standard 9 (IFRS 9). This measure amends the Change of Accounting Practice Regulations 2004 (SI 2004/3271) so that all transitional adjustments arising on first adoption of IFRS 9 for credit losses will be spread over 10 years.

The measure will have effect for periods of account commencing on or after 1 January 2015.

Draft legislation for this measure has also been published.

The Regulations have now been made law.

Published 26 March 2015
Last updated 4 August 2015 + show all updates
  1. The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2015 have been made.
  2. First published.