Deferred tax on revaluation of PPE

Recognition of deferred tax on revaluation

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I have a client that has a property (non investment property), which is used for the purposes of the trade. This property has been revalued in prior years and has a revaluation gain of around £600k. The company in question is reporting under FRS 102 (Medium sized company), I have reviewed the legislation of FRS 102 S.29 Income tax (assets which are non monetary assets), and am of the opinion that defered tax should be recognised on this revaluation, under the timing difference plus approach. A colleague has however suggested that there is an exemption from recognising deferred tax on this item either due to the fact that the asset is not expected to be sold (I am of the opinion that this was per FRS 19 and now irrelevant) or that due to the fact that this is PPE used for purposes of trade that this does not need to be provided. Can anyone confirm whether this is the case and point me in the direction of the relevant legislation? We have also disagreed about whether the revaluation reserve remains as a separate reserve or is shown as a non distributable reserve within retained earnings, can anyone confirm the correct position here also? Thanks in advance.

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