I am facing a corporate taxation problem involving a portfolio of quoted QCB's and do not know how to resole it . A client of mine, an invetment company has a large portfolio of quoted QCB's and all managed by a professional firm of Fund Managers. Under FRS 102, the QCB's need to be revalued at their fair values (being their market values) as at year end . This creates a significant revaluation credit, which under FRS102, needs to go through the P&L account. Taxation of the QCB's is governed by "Loan Relationship Legislation" rather "CGT Legislations" and as such there is no escaping from paying corporation tax on the unrealised gains created on the revaluation of the QCB's and gone through the P&L A/C. Surely this can not be correct ! Can I take out the unrealised credit out of the profit in the CT computaions ? But this seems to contradict the requirements of LR when used with FRS102 . Can anyone help please.