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Taxfiler revaluation of investment property

How to transfer gains out of distributable profits to revaluation reserve

So this is a bit tricky - for fellow Taxfiler users:

FRS102.1a requires revaluation of investment properties be recognised through the P&L. However ICAEW guidance states that there should probably be a transfer of this gain out of distributable reserves to an undistributable reserve (ie a revaluation reserve)  https://www.icaew.com/-/media/corporate/files/helpsheets/new-uk-gaap/frs-102-how-to-account-for-investment-property.ashx?la=en

This does not seem unreasonable. 

However trying to do this in Taxfiler is proving an issue as the only options to make a transfer out of profits is a transfer to a capital redemption reserve.

How have others using Taxfiler dealt with investment property - The ICAEW state only that "So..it may be useful to transfer the movement into a separate non-distributable reserve". Sounds kind of optional to me. Maybe I should just keep the gain in accumulated profit and losses.

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By daniel_
13th Dec 2018 11:37

In other software we have included a reserves description note to type something like "included within retained earnings is £xxx of non-distributable reserves".

Is this possible in Taxfiler?

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to daniel_
13th Dec 2018 11:41

Bl00dy genious - thank you so much!

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13th Dec 2018 13:50

As a general point, Taxfiler is a developing app and it was the need for a Capital Redemption Reserve in one of my clients that resulted in Taxfiler amending their standard TB (ditto foreign exchange gains/losses).

From memory these changes only took a couple of weeks so always worth pointing out the omission and asking them to incorporate it.

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to Paul Scholes
13th Dec 2018 14:05

I can confirm this. I emailed them and said that it wasn't necessary to disclose the Corporation Tax liability separately (thereby giving an idea of profits), as opposed to a global figure of amounts due in respect of taxation.

They agreed, changed the software, all done within a week.

If you need a change, email them and see what they say.

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