Finance Act 2000

Tax treatment must accord with accounting approach in relevant group accountsU.K.

4(1)If the taxpayer is a member of a group of companies for which consolidated group accounts are required to be prepared, the accounting approach adopted by the taxpayer for tax purposes in respect of items within paragraph 2 or 3 must not be more cautious than that adopted in the group accounts.U.K.

(2)The “accounting approach” means the accounting policies used in preparing the accounts and the methods of applying those policies.

(3)Where consolidated group accounts are required to be prepared for more than one group of which the taxpayer is a member, this paragraph applies in relation to each of them.

(4)In this paragraph—

  • “consolidated group accounts” means group accounts that satisfy the requirements of—

    (a)

    section 227 of the M1Companies Act 1985, or

    (b)

    in Northern Ireland, Article 235 of the M2Companies (Northern Ireland) Order 1986,

    or the corresponding requirements of the law of a country outside the United Kingdom; and

  • “group of companies” means a group as defined in—

    (a)

    section 262(1) of the M3Companies Act 1985, or

    (b)

    in Northern Ireland, Article 270(1) of the M4Companies (Northern Ireland) Order 1986,

    or the corresponding provisions of the law of a country outside the United Kingdom.

Marginal Citations