This guidance describes the post-FA 2002 taxation of loan
relationships, derivative contracts and FOREX.
Where an asset is used for the purposes of a business whose
profits and losses are to be computed in a currency other than
sterling, capital allowances on plant and machinery are also
calculated in that currency.
Where the Capital Allowances Act 2001 refers to a specific
monetary limit in sterling, for example the £12.000 limit set
for expensive cars, FA93/S94A (6) allows companies to use the
equivalent amount in the relevant foreign currency when making
their calculations.
See example at
CFM10530a.
