Autumn Statement 2015: Loan relationships and derivative contracts

Regulations have already been published to address certain changes to loan relationships and derivative contracts which reflect legislation in Finance (No 2) Act 2015.

The accounting treatment of loan relationships is subject to change on the introduction of FRS 102, and further legislation is expected to deal with the transition, and to ensure continuity in the tax treatment.

New legislation will be introduced to update the tax rules for company debt and derivative contracts to ensure they interact correctly with new accounting standards in three specific circumstances. The changes will be included in Finance Act 2016.