Corporation Tax Act 2009 section 315

Introduction to sections 316 to 319

Section 315 sets out the conditions that must be met for the adjustment rules in sections 316 and 318 to apply when a company changes the accounting basis used to calculate credits and debits on its loan relationships.

• When a company changes the accounting basis for calculating loan relationship credits and debits from one period to the next, specific adjustment rules in sections 316 and 318 may apply
• The change must either be required by the loan relationships legislation or result from a change in the company's own accounting policy — but not from new amending legislation that did not apply to the previous period
• Both the old and the new accounting bases must have been in accordance with the law or practice applicable to their respective periods
• The period before the change is called "the earlier period" and the period after the change is called "the later period" — and section 416(5) covers cases where these rules apply as if a change of accounting policy had occurred