BIM39500 - Foreign exchange: contents

This chapter relates only to unincorporated businesses. This includes partnerships, provided at least one partner is an individual. It does not apply to companies within the charge to Corporation Tax. It deals with:

• the rate of exchange that traders should use to translate foreign currency amounts into sterling,
• the tax treatment of exchange differences arising on monetary assets or liabilities of the business,
• businesses that prepare accounts in a non-sterling currency.

Exchange gains and losses that arise on the monetary assets or liabilities of companies are taxed or relieved under the loan relationship rules. See CFM60000 onwards.

This chapter contains the following:

1. BIM39501

   Introduction
2. BIM39505

   Rates of exchange
3. BIM39510

   Exchange rate for accounts purposes
4. BIM39515

   Exchange rate for tax purposes
5. BIM39520

   Monetary assets and liabilities: general principles
6. BIM39525

   Gains or losses: on monetary liabilities
7. BIM39530

   Gains or losses: capital or revenue: terms of borrowing
8. BIM39535

   Gains or losses: capital or revenue: use of money
9. BIM39540

   Gains or losses: capital or revenue: summary
10. BIM39545

    Monetary assets
11. BIM39550

    Monetary assets: practical approach
12. BIM39555

    Matched assets and liabilities
13. BIM39560

    ‘Marine Midland matching’
14. BIM39565

    Business uses the ’offset method’
15. BIM39570

    Currency contracts
16. BIM39575

    Capital gains interactions
17. BIM39580

    Foreign currency accounts