Clause 101 - References to accounting practice and periods of account
Finance Bill
5:45 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
The amendments have been tabled because the point has been raised that it does not make much sense to require all companies operating in the UK to use UK generally accepted accounting practice for their accounting. Many branches of such companies will not be UK-incorporated registered businesses and it would make more sense to allow those branches to use the GAAP of their own country rather than forcing them to use the UK GAAP in respect of their branch activities. To do that would create unnecessary administrative burdens for such branches and for companies which are incorporated outside the UK and thus not subject to UK company law but which, for whatever reasons, may be UK tax resident.
It is possible that the profession has misunderstood the requirement in the clause, but I raise the matter to give the Government the opportunity to clarify their intention.