International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

UK Finance Bill to keep pace with accounting changes

The government has unveiled changes to UK Generally Accepted Accounting Practice in the draft Finance Bill 2012, the legislation that will put into effect measures to be announced in the budget on March 21.

The change will mean that tax legislation dealing with changes of accounting policy apply to the accounting transition adjustments arising because of changes to UK accounting practice.

It will apply to accounts prepared after January 1 2012 and for accounting periods that start before this date. It is not expected to have any impact on the amount of revenue the government collects.

The change has had to be introduced because of an October 2010 announcement from the Accounting Standards Board that it intended to change UK GAAP during 2012. The Treasury explained that the law provides that, in particular circumstances, on a change of accounting policy income is taxed once and expenditure allowed once. The tax law as it stands now would not apply to the accounting transition adjustments arising from the changes to UK GAAP.

“The measure will ensure consistency and fairness across businesses. It will also prevent disadvantage to businesses and protect against Exchequer loss by maintaining the existing policy objective underlying current law. The policy remains that income should be taxed once and the expenditure should be relieved once,” the Treasury said.

more across site & bottom lb ros

More from across our site

Premier League football clubs are accused of avoiding paying up to £470 million in UK tax, while Malta is poised to overhaul its unique corporate tax system.
Bartosz Doroszuk of MDDP offers insights on Poland’s new tax legislation on shifted profits, as the implementation deadline looms nearer.
Four tax specialists preview the UK’s transfer pricing requirements, which come into effect on April 1.
The rise of the QDMTT will likely change how countries compete on tax and transfer pricing policy, but it may not reverse decades of falling corporate tax rates.
ITR’s latest quarterly PDF is going live today, leading on the EU’s BEFIT initiative and wider tax reforms in the bloc.
COVID-19 and an overworked HMRC may have created the ‘perfect storm’ for reduced prosecutions, according to tax professionals.
Participants in the consultation on the UN secretary-general’s report into international tax cooperation are divided – some believe UN-led structures are the way forward, while others want to improve existing ones. Ralph Cunningham reports.
The German government unveils plans to implement pillar two, while EY is reportedly still divided over ‘Project Everest’.
With the M&A market booming, ITR has partnered with correspondents from firms around the globe to provide a guide to the deal structures being employed and tax authorities' responses.
Xing Hu, partner at Hui Ye Law Firm in Shanghai, looks at the implications of the US Uyghur Forced Labor Protection Act for TP comparability analysis of China.