New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 24 Income tax

1 Introduction

   1.1 Allocation of tax income and expense between periods

       1.1.1 No provision for deferred tax (‘flow through’)

       1.1.2 Provision for deferred tax (the timing difference approach)

   1.2 Permanent differences

2 Key differences to IFRS and previous UK GAAP

   2.1 Withholding taxes on dividends and VAT and other sales taxes

   2.2 Current tax and deferred tax

3 Scope of Section 29

   3.1 Terms used in Section 29 of FRS 102

   3.2 What is an ‘income tax’?

       3.2.1 Levies

       3.2.2 Tonnage tax

   3.3 Withholding and similar taxes

   3.4 Investment tax credits

   3.5 Interest and penalties

   3.6 Effectively tax-free entities

   3.7 Discontinued operations – interaction with Section 5

4. Value Added Tax (‘VAT’) and other similar sales taxes

5 Current tax

   5.1 Enacted or substantively enacted tax legislation

       5.1.1 UK

       5.1.2 Republic of Ireland

       5.1.3 Other jurisdictions

   5.2 Uncertain tax positions

       5.2.1 Classification of uncertain tax positions

   5.3 ‘Prior year adjustments’ of previously presented tax balances and expense (income)

   5.4 Intra-period allocation, presentation and disclosure

6 Deferred tax – Recognition

   6.1 Recognition of deferred tax on timing differences

       6.1.1 Examples of timing differences

       6.1.2 Deferred taxable gains

   6.2 Restrictions on the recognition of deferred tax assets

       6.2.1 Recovery against the reversal of recognised deferred tax liabilities ...