Section 315 — Corporation Tax Act 2009: Introduction to sections 316 and 318

Introduction to sections 316 and 318 315 1 Sections 316 and 318 (adjustments on change of accounting basis) apply if—

a a company changes, from one period of account or accounting period to the next, the basis of accounting on which credits and debits relating to its loan relationships or any of them are calculated for the purposes of this Part, b the change of basis—

i is made in order to comply with a provision made by or under this Part requiring those credits and debits to be determined on a particular basis of accounting, or ii results from a change of the company's accounting policy, c the change of basis is not made in order to comply with amending legislation not applicable to the previous period, d the old basis accorded with the law or practice applicable in relation to the period before the change, and e the new basis accords with the law and practice applicable to the period after the change.

2 In this section and sections 316 and 318 —

a the first of the periods mentioned in subsection (1) is referred to as “ the earlier period ”, and b the next is referred to as “ the later period ”. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 For a case where this section and sections 316 to 318 apply as if a change of accounting policy had occurred, see section 416(5) (election for application of sections 415 and 585).