The following Tax guidance note provides comprehensive and up to date legal information covering:
This Practice Note sets out rules that apply to periods of account beginning before 1 January 2015.
In such periods, where certain conditions were met, the Disregard Regulations applied automatically and were mandatory.
With effect in relation to periods of account beginning on or after 1 January 2015, in the light of the closer alignment of both:
UK GAAP with IFRS (bringing more hedging arrangements 'on-balance sheet' at fair value), and
the core derivative contracts regime with the recognition of amounts as items of profit and loss (ie the tax regime no longer brings amounts recorded in equity into account)
Many more companies are likely to be required to apply the detailed provisions of the Disregard Regulations. As a result, to ease the transition to the new accounting framework and give companies a degree of choice (and subject always to certain important exceptions and anti-avoidance provisions), the default position is that the Disregard Regulations in this area do not apply but a company wishing to ensure that they do can make an election to that effect. This is a reversal of the general position that applies for periods of account beginning before 1 January 2015.
As a result, the elections outlined in this Practice Note are no longer necessary and the rules that provide for them to be made have been repealed.
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