Q&As

What is a ‘financial asset’ under the Taxation of Securitisation Companies Regulations 2006 (SI 2006/3296)?

read titleRead full title
Published on LexisPSL on 24/04/2017

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • What is a ‘financial asset’ under the Taxation of Securitisation Companies Regulations 2006 (SI 2006/3296)?
  • GAAP definition
  • Taxation of Securitisation Companies Regulations 2006 inclusions and exclusions

What is a ‘financial asset’ under the Taxation of Securitisation Companies Regulations 2006 (SI 2006/3296)?

‘Financial asset’ is defined in regulation 2 of the Taxation of Securitisation Companies Regulations 2006, SI 2006/3296 (the Securitisation Regs) (Securitisation Regs, SI 2006/3296, reg 2) as having the meaning it has for generally accepted accounting practice, but subject to a number of specific inclusions and exclusions, which are explained below.

GAAP definition

As explained in Practice Note: Loan relationships—accounting framework and principles, generally accepted accounting practice (GAAP) for the purposes of the Corporation Tax Acts means both UK GAAP and International Accounting Standards (IAS).

Financial assets are defined in Financial Reporting Standard 102 (FRS 102) and IAS 32. Appendix 1 to FRS 102 sets out the following definitions:

AssetA resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Financial assetAny asset that is:
  1. (a) cash

  2. (b) an equity instrument of another entity

  3. (c) a contractual right:

    1. (i) to receive cash or another financial asset from another entity, or

    2. (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity, or

  4. (d) a contract that will or may be settled in the entity's own equity instruments and:

Related documents:

Popular documents