Application of UITF 40

[simplytax]

If a partnership has reflected closing WIP as uplifted under UITF 40 but not opening WIP, what adjustments are required for tax ?

Partnership accounts do not need to reflect GAAP but for tax purposes GAAP requires to be followed. Therefore presumably a GAAP adjustment is required in the tax computation to reduce the profit for the uplift in opening WIP under UITF 40 and then a separate UITF 40 adjustment to increase profits for the same amount but spread over 3 years ?

[wamstax]

try this link and I hope it helps

http://www.hmrc.gov.uk/sa/spread-uitf.htm

regards
bill@wamstaxltd.com
http://www.wamstaxltd.com