Corporation Tax Act 2009 section 465A

Power to make regulations where accounting standards change

Section 465A gives the Treasury a regulation-making power to deal with the corporation tax consequences when changes in accounting standards alter the way companies account for loan relationship debits and credits.

• The Treasury may make regulations where a change issued by a recognised accounting body (such as the International Accounting Standards Board or the Accounting Standards Board) results in a change to how companies recognise amounts brought into account as credits or debits under the loan relationships rules in Part 5.
• Regulations may amend the primary legislation on loan relationships (other than section 465A itself), make different provision for different cases, include consequential and transitional provisions, allow for elections, and even amend corporation tax provisions outside the loan relationships rules.
• Regulations may have retrospective effect — they can apply to accounting periods that began before the regulations were made, provided the relevant accounting change could be adopted for a period of account (or part of one) that coincides with that earlier period.
• "Accounting standard" is defined broadly to include any statement of practice, guidance, or similar document, and "accounting body" includes the International Accounting Standards Board, the Accounting Standards Board, or any successor body to either.