GIM9100 - Mutual insurance: tax treatment: accounting periods beginning on or after 1 October 2002: exchange gains and losses

Exchange gains and losses on monetary assets and liabilities for accounting periods beginning on or after 1 October 2002 are brought into account under the loan relationships legislation as non-trading credits and debits.

Exchange gains and losses on any monetary items which are money debts but not loan relationships are within FA96/S100, re-enacted as CTA09/S481. This might arguably apply to any gains and losses on technical reserves of a mutual. If any such gains or losses are returned by a mutual general insurer, the issue should be referred to CT&VAT (Insurance) Technical.

Transitional rules applied to the new treatment for accounting periods beginning on or after 1 October 2002. Further detail may be found in the previous version of GIM9100. This is available from the Editor.