# The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2016, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 (“the principal Regulations”) which make provision in relation to bringing into account of certain debits and credits arising on a change of accounting policy in drawing up a company’s accounts. The amendments are consequential to amendments made to Parts 5 and 7 of the Corporation Tax Act 2009 in relation to the taxation of loan relationships and derivative contracts.
Regulation 1 provides for citation, commencement and effect. Authority for the limited retrospective effect is provided by section 319(5) of the Corporation Tax Act 2009.
Regulation 2 introduces the amendments.
Regulation 3 amends regulation 3C so that amounts recognised in a company’s accounts in an accounting period beginning before 1st January 2016 as an item of other comprehensive income which have not been transferred to become items of profit or loss are not brought into account under the principal Regulations
A Tax Information and Impact Note for the modernisation of the taxation of corporate debt and derivative contracts which covers this instrument was published at Summer Budget 2015 on 8th July 2015 and is available on the HMRC website at: http://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.It remains an accurate summary of the impacts that apply to this instrument.

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Source: https://www.legislation.gov.uk/uksi/2016/1234/note (the official version)
Page: https://openlegislation.uk/loan-relationships-and-derivative-contracts-change-of-accounting-practice-amendment-regulations-2016/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.