HMRC Announcements on IFRS16The HMRC have already stated that the changes to IFRS16 will be revenue neutral and there are a number of different options being analysed before the regulations are finalised. At the KPMG Leasing and Asset finance forum Paul Hindley, leasing policy specialist, corporation tax, international and stamps at HMRC advised asset finance professionals on the HMRC’s stance on the forthcoming accounting changes and the resulting tax burden on the leasing industry. He summarised the position of the HMRC by stating
“We’re not seeking to raise revenue… [we want] the smoothest transition possible to accommodate changes.”
Key Change With IFRS16 LeasesThe key change to the regulations is that IFRS16 removes the division in classification between finance and operating leases. This will also include anti-avoidance rules relating to the sale and finance of leasebacks.
Leasing Life identifies that the changes are part of a drive towards simplification in a post-2008 landscape.
With cloud-based technology opening new opportunities within the leasing industry, VIP continues to monitor and adapt our advice to clients based on developments within the technology and processes affecting the industry.
About VIP Apps ConsultingVIP Apps Consulting has extensive experience within the financial services industry with the knowledge capabilities and operational track, to help organisations implement the process changes, optimisation, and innovation to realise the financial value in a customer driven market.
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