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FRS102 ; Tax Consideration

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The last few FRS102 lectures I've attended they have said that a company on transition from old UK Gaap to New FRS regime can uplift the value of a fixed asset, taking the uplift to P&L and not to revaluation reserve.

Q. Is this uplift chargeable to CT (even though its not realised) ?

Q. Presumably it not distributable ?

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By TerryD
01st Jul 2016 15:16

If it's a trading property (as opposed to an investment property), then I think the uplift still goes to revaluation reserve. But to answer your question, it is not chargeable to CT, but you must provide for deferred tax on the uplift in value (and this is charged against either revaluation reserve or P & L depending on where the uplift goes). And it is not distributable. If it is in the P & L Account, then it's a good idea to add a narrative note under Reserves to state the non-distributable element included.

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