Finance Act 2005 (c. 7)

SCHEDULES

Valid from 07/04/2005

SCHEDULE 4 U.K. Accounting practice and related matters

Part 2 U.K. Other provisions connected with accounting practice

FA 1996 U.K.

30 U.K. In Schedule 9 to FA 1996 (loan relationships: special computational provisions), after paragraph 14 (debits and credits treated as relating to capital expenditure) insert—

“Debits and credits recognised in equity or shareholders' funds U.K.

14A Where in accordance with generally accepted accounting practice a debit or credit for a period in respect of a loan relationship of a company—

(a) is recognised in equity or shareholders' funds, and

(b) is not recognised in any of the statements mentioned in section 85B(1),

the debit or credit shall be brought into account for that period for the purposes of this Chapter in the same way as a debit or credit that, in accordance with generally accepted accounting practice, is brought into account in determining the company's profit or loss for that period.”.