CFM - Recent changes to this Manual
Below are details of the amendments that were published on 27 October 2005 (see the update index for all updates).
| Section | Title and details of the update |
| CFM5003 | Using the guidance and
legislation.
Reference to FA 2004 changes added. |
| CFM5051 | Who the rules apply to
Cross-reference to guidance on Collective Investment Schemes added. |
| CFM5053 | Definition
Section renumbered: previously CFM5055. Reference to alternative finance arrangements added, and cross-reference to guidance on FA96/S81 (3) inserted. |
| CFM5054 | Money debt
Section renumbered: previously CFM5056. |
| CFM5054a | Money debt –
examples
Section renumbered – previously CFM5056a.. |
| CFM5054b | What is meant by debt?
New section expanding the guidance on this topic. |
| CFM5055 | Money debts treated as
loan relationships
New section added giving overview of FA96/S100 and links to more detailed guidance. |
| CFM5057 | Lending money
Material on trade debts updated. Minor changes to text on inter-company accounts and replacement of trade debts by loans, to add clarity. |
| CFM5057a | Money debts that
don’t involve lending money
Guidance on treatment of impairment losses on trade debts updated. |
| CFM5058a | Issue of company
securities: debt instruments
Rewritten to provide additional guidance on FA96/S81 (3) |
| CFM5059 | Shares with similarities
to debt
Title changed (previously “Issue of company shares”) to reflect content more accurately. Amended to take account of FA96/S91A et seq |
| CFM5059a | Shares with similarities
to debt - example
Preference share example amended to include reference to FA96/S91B. Title changed. |
| CFM5059b | Debt linked to shares -
example
Reference added to new treatment of asset-linked securities in periods beginning after 1 January 2005. Title changed to reflect content more accurately. |
| CFM5060 | Guarantee payments
First and second paragraphs expanded to clarify the guidance. |
| CFM5060a | Guarantee payments
– example
Rewritten to make it clear that subrogation rights are not to be confused with whether the guarantee is a loan relationship. |
| CFM5061 | Types of loan
relationship
Reference to alternative finance arrangements, and cross-reference to guidance on convertibles and asset-linked securities, added. |
| CFM5065 | Related transactions:
definition
Guidance expanded. |
| CFM5066 | Transfers
Amended to give a fuller description of the legal meaning of novation. |
| CFM5067 | Extinguishing
Amended to remove a potentially misleading reference to “informal waiver”. |
| CFM5070 | Securities
Reference to the repeal of FA96/S92 and FA96/S93 added. |
| CFM5100 | Taxing loan
relationships: accounting methods: overview
Material added about repeals made in FA 2004, and location of new guidance. |
| CFM5101 | Introduction to
accounting methods
New paragraph dealing with the role of HMRC compliance accountants added. Minor textual changes to increase clarity. |
| CFM5101+ | Authorised accounting
methods
“Health warning” added to CFM5101 – 5143 that this guidance applies only to periods beginning before 1 January 2005 |
| CFM5101a | Introduction to
accounting methods: GAAP
Reference to new definition of GAAP (introduced by FA04/S50) added. |
| CFM5105 | GAAP for accruals
Minor amendment to first paragraph to make sense clear. |
| CFM5107 | Allocating payments
Meaningless words “in the case of payments under a loan relationship” deleted. |
| CFM5115 | Bad debts
Example added to clarify treatment of exchange gains and losses. |
| CFM5125 | Release of debt –
borrower
Section deleted – material now incorporated into CFM5207 |
| CFM5130 | Using mark to market
Reference to Inland Revenue changed to HMRC. |
| CFM5145 | Accounts prepared under
IAS
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5145a | Non UK companies
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5147 | Abolition of authorised
accounting methods
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5149 | Computation to follow
accounts
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5149a | FA96/S85A (2) example
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5151 | Fair value and amortised
cost accounting
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5153 | Impairment - companies
using IAS 39 or FRS 26
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5153a | Impairment –
example
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5155 | Impairment –
companies using old UK GAAP
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5157 | Impairment – trade
and similar debts
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5159 | Prohibitions on revaluing
debt
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5159a | Fair value hedge example
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5201 | Taxable amounts:
introduction – credits and debits
Amended to reflect abolition of authorised accounting methods. |
| CFM5202 | Profits, gains and losses
Material on exchange gains and losses and amounts taken to reserves, which was previously at CFM5303, added to this section. |
| CFM5203 | Computing credits and
debits – periods beginning before 1 January 2005
New material, replacing previous CFM5203. |
| CFM5203a | Credits and debits:
example
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5204 | Change of accounting
method
New material added, relating to the provisions applying for periods beginning on or after 1 January 2005. |
| CFM5205 | Exceptions – loan
relationships with unconnected parties
New material added, relating to periods beginning on or after 1 January 2005. |
| CFM5206 | Amounts recognised in
equity
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5207 | Releases of debt
Rewritten to cover the position both before and after 1 January 2005. |
| CFM5207a | Released debt –
example
Section moved – previously CFM5125a. |
| CFM5207b | Statutory insolvency
arrangements
Section retitled (previously “Relevant arrangement or compromise”) and expanded to give guidance on the new definition of statutory insolvency arrangement. |
| CFM5207c | Writing off government
investments
Section moved – previously CFM5125c |
| CFM5208 | Debt/equity swaps –
treatment of debtor
New section, giving expanded guidance on the position both before and after 1 January 2005. (Incorporates material from current CFM5523, which will be deleted). |
| CFM5209 | “Tainted”
held to maturity assets
New section – guidance applicable to periods beginning on or after 1 January 2005. |
| CFM5216 | Interest specifically
included
Minor amendments to insert a reference to impairment of trade debts, and a cross-reference to CFM5230 on capitalised interest. |
| CFM5216a | Specific inclusions
– imputed interest
Updated for the amendment of FA96/SCH9/PARA16. |
| CFM5220 | Discounts and premiums
Reference inserted to new provision in FA96/S100 on discounts on money debts. |
| CFM5230 | Debits and credits
relating to capital expenditure
Last paragraph amended to clarify the effect on the company’s tax computations. |
| CFM5320 | Other claims
Minor amendment as a result of FA 2004 changes to bad debts and consortium relief. |
| CFM5321 | Debits for pre-trading
expenditure
Amended to clarify the effect of making an election. |
| CFM5400 | Connected persons:
contents
Sub-menu for connected persons guidance added. |
| CFM5401 | Connected persons:
overview
Updated for FA 2004 changes, and renumbered from 5400 to 5401. |
| CFM5403 | Connected persons:
accounting method
Guidance added on position for periods beginning on or after 1 January 2005. |
| CFM5404 | Connected persons:
consequences of connection
Reference to impairment losses added. |
| CFM5406 | Imposed change of
accounting method: becoming connected
New screen, covering FA 2004 changes to FA96/S87. |
| CFM5406a | Change of accounting
method on becoming connected – example
New screen. |
| CFM5408 | Imposed change of
accounting method: ceasing to be connected
New screen |
| CFM5421 | Connected persons:
conditions for exemption
Layout simplified, and minor amendments made to reflect FA 2004 repeals. |
| CFM5500 | Connection and
impairment: contents
Sub-menu added for section; heading changed throughout section from “bad debts” to “impairment”. |
| CFM5501 | Connection and
impairment: overview
Material previously at CFM5500 migrated to CFM5501, and amended for FA 2004 changes. |
| CFM5502 | Connection and
impairment: basic rules
Material previously at CFM5501 and CFM5502 merged and rewritten to cover tax treatment both before and after 1 January 2005. |
| CFM5505 | Connection and
impairment: related transactions
Updated for FA 2004 changes – reference to partial releases of debt added. |
| CFM5508 | Connection and
impairment: Para 6C
Updated to cover position both before and after 1 January 2005. |
| CFM5509 | Connection and
impairment: debt release – creditor company
New guidance on FA96/SCH9/PARA5ZA. |
| CFM5510 | Connection and
impairment: exceptions to rules
Minor updates for changes made by FA 2005. |
| CFM5511 | Connection and
impairment: becoming connected
Expanded to cover position both before and after 1 January 2005. |
| CFM5512 | Connection and
impairment: Para 6B
Message added that guidance applies only to periods beginning before 1 January 2005. |
| CFM5513 | Connection and
impairment: acquired impaired debt
Material previously at CFM5516 renumbered to CFM5513, and updated for changes made in FA 2005. |
| CFM5514 | Connection and
impairment: tax treatment before 1 January 2005
Material previously at CFM5516 renumbered to CFM5514. |
| CFM5515 | Connection and
impairment: relief under Para 6B
Material previously at CFM5517 renumbered to CFM5515. Erroneous example at CFM5517a deleted, and remaining material included in CFM5515. |
| CFM5516 | Connection and
impairment: effect of Para 6B(6)
Material previously at CFM5518 renumbered to CFM5516. |
| CFM5517 | Connection and
impairment: Para 4A
New guidance. |
| CFM5518 | Connection and
impairment: Para 4A – first case
New guidance. (New examples at CFM5518a and b). |
| CFM5519 | Connection and
impairment: Para 4A – creditor becomes connected
New guidance. (New examples at CFM5519a and b). |
| CFM5520 | Impairment –
special cases: contents
New sub-menu added. |
| CFM5520a | Impairment –
special cases: creditor in debt/equity swap
Material previously at CFM5520 renumbered to CFM5520a. Amended to refer to impairment rather than bad debts. |
| CFM5523 | Treatment of debtor in
debt/equity swap
Bulk of material transferred to CFM5208, as being more appropriate to section on debt releases. |
| CFM5525 | Creditor in liquidation
More detail on insolvency proceeding added. |
| CFM5526 | Creditor in liquidation:
effect on debtor
New screen, incorporating some material previously at CFM5525. |
| CFM5527 | Debtor in liquidation
New screen, covering provisions introduced by FA 2004. |
| CFM5528 | Debtor or creditor in
liquidation: summary of rules
New screen. |
| CFM5550 | Impairment –
consortia: contents
New sub-menu added. Heading changed throughout section from “bad debts” to “impairment”. |
| CFM5550a | Impairment –
consortia: overview
Previous CFM5550 renumbered to CFM5550a, and reference to impairment loss substituted for bad debts. |
| CFM5600 | Connected persons and
late interest: contents
New sub-menu |
| CFM5600a | Connected persons and
late interest: overview
Previous CFM5600 now renumbered to CFM5600a. |
| CFM5603 | Connection through
participation in a close company
New material at CFM5603c and CFM5603d added, to cover changes to the CIS based close company exemption. |
| CFM5604 | Connection through a
major interest
Updated for change in legislation made by FA 2004. |
| CFM5610 | When is interest paid?
Reference to Business Tax changed to CT & VAT PP. |
| CFM5615 | When is a lender not
fully within FA 1996?
Minor update to remove references to authorised accruals basis. |
| CFM5616 | When have credits been
brought into account by the creditor?
Guidance rewritten to improve clarity, and to cover the position both before and after 1 January 2005. |
| CFM5700 | Connected persons and
discounted securities: contents
New sub-menu added. |
| CFM5701 | Connected persons and
discounted securities: introduction
Material at CFM5700 renumbered to CFM5701. Example at CFM5700a deleted as adding nothing to text. Minor update to remove reference to authorised accruals basis. |
| CFM5702 | Deeply discounted
securities: definition
Reference added to ITTOIA 2005 and change of terminology from “relevant discounted securities” to “deeply discounted securities”. |
| CFM5703 | Deep gain
Reference to relevant discounted securities updated. |
| CFM5710 | Connected persons and
discounted securities: Para 17
Reference to relevant discounted securities updated. |
| CFM5711 | Connected persons and
discounted securities: series of debts
Minor changes to text and layout to improve clarity. |
| CFM5712 | Connected persons and
discounted securities: connection for Para 17
Amended for FA 2004 change to major interest test. |
| CFM5713 | Credits not brought into
account
Additional words inserted to improve clarity. |
| CFM5725 | Connected persons and
discounted securities: Para 18
Cross-references inserted to new guidance on CIS based close companies. CFM5725a deleted and text incorporated into CFM5725. |
| CFM5726 | Connected persons and
discounted securities
Updated for changes made by FA 2005. |
| CFM5727 | Connected persons and
discounted securities: creditor taxable on discounts
Updated to refer to impairment losses. |
