SE26105 - Loans in foreign currencies

Section 160(5)(d) ICTA 1988

Treasury regulations may specify different official rates for use with certain loans made in currency of a country outside the United Kingdom.

The loans are those the benefit of which is obtained by a person

• who normally lives in the country or territory in the currency of which the loan is made and
• who has lived in that country or territory at some time in the period of six years ending with the year of assessment concerned.

The phrases 'normally lives' and 'has lived at some time' are not defined in the statute and so have their ordinary common-sense meanings.

An individual normally lives in the place (if any) where taking all the facts into account one would normally expect him to be in the absence of some special reason to the contrary (such as a temporary period of employment elsewhere).

'Has lived at some time' carries an implication of continuity but not necessarily of permanence.

A table showing currencies for which official rates different from that generally applicable have been prescribed, what those rates are and for which periods they apply is at SE26106.