This guidance describes the post-FA 2002 taxation of loan
relationships, derivative contracts and FOREX.
Some other capital allowances, such as Industrial Buildings
Allowance and Agricultural Building Allowance, are given on a
straight-line basis based on the original expenditure that
qualifies for the allowance. In the case of Research and
Development Allowance, the allowance will normally be 100% of the
original expenditure.
Capital allowances of this kind are also computed in the
currency of the accounts. The amount of the allowance will be based
on the original qualifying expenditure, expressed in the currency
of the accounts. If the original expenditure was in a different
currency (including sterling), the expenditure should be translated
into the reporting currency at the exchange rate for the day on
which it was incurred - see CA11750.
See example at
CFM10531a.
