UK: Tax regulations, loan relationships and derivative contracts

UK tax regulations

Four sets of regulations, laid before Parliament, are to amend existing regulations on the taxation of loan relationships and derivative contracts. The changes apply to accounting periods beginning on or after 1 January 2016.

Related content

  • The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment No. 2) Regulations 2015 (SI 2015/1962) – Amendments are being made to regulations applying when there are changes to the carrying value of loans from one period to the next
  • The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) (Amendment) Regulations 2015 (SI 2015/1961) – Amendments are being made to the “disregard regulations"
  • The Exchange Gains and Losses (Bringing into Account Gains or Losses) (Amendment) Regulations 2015 (SI 2015/1960) – Amendments are being made to regulations applying when exchange differences on loans and derivatives which hedge foreign exchange risk from an investment in a foreign enterprise have been disregarded
  • The Loan Relationships and Derivative Contracts (Exchange Gains and Losses using Fair Value Accounting) (Amendment) Regulations 2015 (SI 2015/1963) – Amendments are being made to regulations which set out how to calculate exchange gains and losses from loan relationships and derivative contracts where the assets and liabilities are accounted for using fair value accounting

 

Read a December 2015 report [PDF 742 KB] prepared by the KPMG member firm in the UK:  Weekly Tax Matters (11 December 2015)

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