Having passed report stage and third reading (meaning no further material changes are possible), Finance Bill 2021 has been ‘substantively enacted’. The ICAEW reports that, under FRS 102, deferred tax must be measured using whatever tax rates have been enacted or substantively enacted by the reporting date and are expected to apply to the reversal of the timing difference. The 25% main rate of corporation tax (and potential marginal relief), having been confirmed in the Finance Bill, will therefore be relevant for certain asset sales or timing differences expected to reverse on or after 1 April 2023.
Having passed report stage and third reading (meaning no further material changes are possible), Finance Bill 2021 has been ‘substantively enacted’. The ICAEW reports that, under FRS 102, deferred tax must be measured using whatever tax rates have been enacted or substantively enacted by the reporting date and are expected to apply to the reversal of the timing difference. The 25% main rate of corporation tax (and potential marginal relief), having been confirmed in the Finance Bill, will therefore be relevant for certain asset sales or timing differences expected to reverse on or after 1 April 2023.
