The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Foreign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:
The remainder of this guidance note focuses on FX movements arising on monetary assets and liabilities. Associated HMRC guidance notes can be found in CFM61000.
FX differences are translation differences and should not be confused with fair value movements, as the tax treatment applicable to each is not always the same.
An FX gain / loss is defined in CTA 2009, s 475. It is the difference between the carrying value of an asset / liability denominated in one currency when
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login