CFM700 - What's New

Introduction to 'What's New'

FA2002 brought significant changes to the tax legislation dealing with all aspects of corporate finance. Following extensive consultation, the new regime

• repeals the foreign exchange (FOREX) legislation and brings the taxation of profits, gains and losses from foreign currency transactions within the loan relationships and derivative contracts regimes
• amends other legislation dealing with certain aspects of FOREX, such as the matching regulations
• rewrites the financial instruments legislation to provide new, more extensive definitions of derivative contracts and rationalise their tax treatment
• tackles avoidance within loan relationships, while establishing a fairer way of treating certain transactions between connected persons.

If you are already familiar with the legislation before FA2002, you may find it useful to browse the 'What's New' pages to get a feel for the major changes.

If you are not familiar with the rules before FA2002, you may find the overview at CFM600 more helpful.

Minor amendments to the loan relationships and derivative contracts legislation were made by FA2003.

Contents

Please be aware that 'What's New' gives an outline only - you will need to refer to the legislation and full guidance before applying this legislation.