Citation, commencement and effect

1.-(1) These Regulations may be cited as the Securitisation Companies (Application of Section 83(1) of the Finance Act 2005: Accounting Standards) (Amendment) Regulations 2016 and come into force on 28th December 2016.

(2) These Regulations do not apply to a company if it elects that the Regulations are not to apply to it.

(3) An election under paragraph (2)-

(a)must be made in writing to Her Majesty's Revenue and Customs,

(b)must be made before the later of-

(i)the end of the first accounting period ending on or after 1st January 2017, and

(ii)31st March 2017, and

(c)is irrevocable.

Amendment of the Securitisation Companies (Application of Section 83(1) of the Finance Act 2005: Accounting Standards) Regulations 2007

2.  In regulation 2(2) of the Securitisation Companies (Application of Section 83(1) of the Finance Act 2005: Accounting Standards) Regulations 2007(2) for "1st January 2017" substitute "1st January 2037".

EXPLANATORY NOTE

(This note is not part of the Regulations)

Section 83(1) of the Finance Act 2005 (c. 7) required securitisation companies to use UK generally accepted accounting practice as it stood at 31st December 2004 as the basis for tax computations for periods of account beginning on or after 1st January 2005 and ending before 1st January 2008. The application of section 83(1) was extended by the Securitisation Companies (Application of Section 83(1) of the Finance Act 2005: Accounting Standards) Regulations 2007 (S.I. 2007/3338) ("the principal Regulations") to periods of account ending before 1st January 2017 in relation to companies to which the provision applied in a period of account ending before 1st January 2008, subject to a company electing that the extension did not apply.

These Regulations amend the principal Regulations to further extend the application of section 83(1) to periods of account ending before 1st January 2037, subject to a company electing that the extension should not apply.

A Tax Information and Impact Note covering this instrument was published on 19th October 2016 alongside the consultation draft of this instrument and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.