Code of Practice on Local Authority Accounting in the United Kingdom: Guidance Notes for 2025/26 Accounts

Please note: the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 was republished on 20 October 2025 to correct the following paragraphs: 2.1.2.64, 3.1.1.17, 4.1.1.6 , 4.3.5.1, 4.5.2.18 and 4.5.3.2. These corrections address residual references to measuring intangible assets using the revaluation model, which was withdrawn in the 2025/26 Code, as well as a small number of typographical errors. Redownload your copy of the 2025/26 Code of Practice.

This year’s edition of the Guidance Notes provides detailed guidance on the key accounting changes introduced by the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the Code).

This edition introduces a substantial and significant accounting change due to CIPFA/LASAAC having regard to HM Treasury’s Thematic Review on Non-investment Assets. The key accounting changes in this edition of the Guidance Notes include the following:

• For property, plant and equipment, a revaluation is required once every five years or on a five-year rolling basis, supported by indexation in intervening years. In the rare cases where no index is available, local authorities may use a desktop valuation in year three instead of indexation.
• Intangible assets must be measured at historical cost.
• A clarification that undertaking a full revaluation should not be a default process to demonstrate there has not been a material impairment of an asset.

Other key changes include:

• Transitional arrangements for IFRS 16 have been removed.
• Updates included to detail Delivering Good Governance in Local Government: Framework.
• Updates to reflect changes to pooled investments.
• Example accounts have been amended to reflect how premiums and discounts are charged to the General Fund in accordance with regulations/statutory guidance.