Income Tax (Trading and Other Income) Act 2005 section 149

Dealers in securities etc: taxation of amounts taken to reserves

Section 149 deals with the transitional rules governing when the taxation of amounts taken to reserves by dealers in securities takes effect, including a special exception for companies using international accounting standards.

• Section 149 does not apply to periods of account beginning before 1 January 2005.
• An exception exists for companies required to prepare accounts under the Companies Act 1985 or the Companies (Northern Ireland) Order 1986.
• For those companies, Section 149 does apply to earlier periods if the company was required or permitted to use international accounting standards for that period.
• The practical effect is that early adoption of international accounting standards brings forward the application of Section 149.