HMRC update their Corporate Finance Manual
HMRC have published a new version of their Corporate Finance Manual (CFM) which replaces the previous CFM and Banking Manual. In this context ‘corporate finance’ means the raising of funds and the managing of money by companies.
The new CFM includes the rewritten legislation on loan relationships and derivative contracts in the Corporation Tax Act 2009. The content of the manual is similar to that of the old manual but with updated sections for the Corporation Tax Act 2009 and a slightly different layout to before.
The main changes relate to the following sections:
- CFM10000+ sets out the commercial background to corporate finance.
- CFM20000+ covers the accounting treatment of corporate finance.
- CFM30000 to CFM80000 contains updated guidance which broadly follows the rewritten legislation on loan relationships and derivative contracts in the Corporation Tax Act 2009.
- CFM1160 and CFM1170 provide a conversion table which sets out the changes from the old CFM and banking manuals to the new CFM.