BLM51045 - IFRS 16 leases: IFRS 16 lessees: taxation of IFRS 16 lessees: early adoption of IFRS 16

Adoption of IFRS 16 is mandatory for accounting periods beginning on or after 1 January 2019, but early adoption is permitted in certain circumstances.

Section 53 Finance Act 2011 provides that for tax purposes, the adoption of IFRS 16 in a period beginning before 1 January 2019 is ignored. An early adopter of IFRS 16 is required to prepare its tax computations on the basis that it prepared its accounts for that earlier period in accordance with the previous standard used.