ECL24200 - Computation step 3: band ranges: adjusting the band ranges

If the relevant accounting period of the person is other than 12 months then the band ranges should be proportionately adjusted, using a daily calculation (s55)(3) FA22).

This calculation is the UK revenue band ranges multiplied by the number of days in the relevant accounting period divided by 365.

Please note, it is the band ranges, not the UK revenue, which are proportionately adjusted to match the length of the accounting period. UK revenue is not adjusted to reflect a 12-month period.

For example, Charlie Ltd has a UK revenue of £10.1m in their relevant accounting period of 219 days. The band ranges for Charlie Ltd should be proportionally adjusted, with the medium ranges banding now being for UK revenue more than £6,120,000 and less than or equal to £21,600,000 (using the calculation of 219/365 multiplied by the band range). Therefore, Charlie Ltd falls within the medium band range. See also the example in [ECL26200].