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Retail prices index
The all items retail prices index for May 2005 is 192.0.
Disregard regulations
The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (SI 2004/3256) (known as the disregard regulations) at regulations 7, 8 and 9 reduce tax volatility by disregarding fair value movements on particular derivative contracts for tax purposes.
Some companies, particularly those holding considerable numbers of derivative contracts, prefer to follow their accounts and accept some degree of volatility. Companies may therefore, under regulation 6, elect that the regulations shall not apply.
The time limit for elections given by regulation 6(6) is the later of:
- the day before the start of the company's first accounting period beginning on or after 1 January 2005; and
- the date specified in the regulations.
The specified date is 31 March 2005. It was announced earlier in the year that it was proposed to amend the regulations to extend this to 1 July 2005. In view of the delay in finalising the amendments to the regulations, which will cover a wide range of changes and are under consultation with interested parties, it is proposed to extend the date further to 1 October 2005.
It is also planned to make it clear in the regulations that, where a company does not adopt either International Accounting Standard 39 or Financial Reporting Standard 26 in its first accounting period beginning on or after 1 January 2005, it can delay making an election until immediately before the first accounting period for which it uses fair value accounting.
www.hmrc.gov.uk
Criminal investigations
Roy Clark has been appointed as the new director of criminal investigations for HM Revenue and Customs. Mr Clark is currently director of investigations for the Independent Police Complaints Commission, and has previously held positions as deputy assistant commissioner with the Metropolitan Police, head of Crimestoppers and head of the South East Regional Crime Squad.
He will be responsible for developing a new investigation service combining the responsibilities of the former Customs and Inland Revenue investigation functions, as well as preparing for the transfer of serious drugs work to the Serious Organised Crime Agency next year.
HMRC press release dated 15 June 2005.
