The next round of consultation and draft legislation for the tax changes required in response to the International Accounting Standards Board’s new leasing standard, IFRS 16, originally expected in Summer 2017, is not now likely to appear until the end of the year.
The next round of consultation and draft legislation for the tax changes required in response to the International Accounting Standards Board’s new leasing standard, IFRS 16, originally expected in Summer 2017, is not now likely to appear until the end of the year. The final tax measures will need to be included in Finance Bill 2018, to be ready for the commencement date of 1 January 2019, when the new standard comes into effect for most companies.
HMRC consulted between August and October 2016 on several options for changes to the tax treatment of leases of plant and machinery and at Spring Budget 2017 the government announced its intention to maintain the current system of lease taxation by making legislative changes which enable the rules to continue to work as intended.
We understand that the next consultation is likely to propose:
continued application of the same set of leasing tax rules, whether or not an entity uses IFRS 16;
continuation of the long-funding lease regime, with necessary adaptations;
streamlining the definition of a finance lease, where the legislation operates by reference to a finance lease; and
amending the legislation to deal with additional capital expenditure on assets incurred by lessees.
The next round of consultation and draft legislation for the tax changes required in response to the International Accounting Standards Board’s new leasing standard, IFRS 16, originally expected in Summer 2017, is not now likely to appear until the end of the year.
The next round of consultation and draft legislation for the tax changes required in response to the International Accounting Standards Board’s new leasing standard, IFRS 16, originally expected in Summer 2017, is not now likely to appear until the end of the year. The final tax measures will need to be included in Finance Bill 2018, to be ready for the commencement date of 1 January 2019, when the new standard comes into effect for most companies.
HMRC consulted between August and October 2016 on several options for changes to the tax treatment of leases of plant and machinery and at Spring Budget 2017 the government announced its intention to maintain the current system of lease taxation by making legislative changes which enable the rules to continue to work as intended.
We understand that the next consultation is likely to propose:
continued application of the same set of leasing tax rules, whether or not an entity uses IFRS 16;
continuation of the long-funding lease regime, with necessary adaptations;
streamlining the definition of a finance lease, where the legislation operates by reference to a finance lease; and
amending the legislation to deal with additional capital expenditure on assets incurred by lessees.
