CFM9404 - Taxing forex: matching under Disregard Regulations: regulation 3 - matching using loan relationships

When does regulation 3 apply?

This guidance applies to periods of account beginning on or after 1 January 2005

Regulation 3 deals with loan relationship liabilities matched with shares, ships or aircraft (provided they are not held for trading – see CFM9440) and, more rarely, loan relationship assets matched with shares.

It does not relate to liabilities that are money debts (such as a trade debt) on which exchange differences are brought within FA96/S100(1).

In order for liabilities to be matched to shares, ships or aircraft either Condition 1 or 2 under regulation 3(3) must apply – see CFM9406.

For the conditions for matching of assets with a company’s own shares see CFM9442.