Corporation Tax Act 2009 section 701A

Power to make regulations where accounting standards change

Section 701A gives the Treasury the power to make regulations adjusting the corporation tax rules on derivative contracts (Part 7) when changes in accounting standards alter how companies recognise amounts for accounting purposes.

• The Treasury can make regulations where a change in accounting standards alters how a company recognises credits or debits relating to derivative contracts for corporation tax purposes.
• A change in accounting standards covers any issue, revocation, amendment, recognition or withdrawal of recognition of a standard (including guidance or statements of practice) by bodies such as the International Accounting Standards Board or the Accounting Standards Board.
• The regulations can amend Part 7 of the Act, make different provision for different cases, include transitional and consequential provisions (including amendments to other Corporation Tax Acts), and may be subject to elections or other specified conditions.
• The regulations can apply retrospectively to accounting periods that began before the regulations were made, provided the relevant accounting change may or must be adopted for a period of account coinciding with that earlier period.