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BIM39500 | Foreign exchange: contents

From HM Revenue & Customs · Business Income Manual

This chapter relates only to unincorporated businesses. This includes partnerships, provided at least one partner is an individual. It does not apply to companies within the charge to Corporation Tax. It deals with:

  • the rate of exchange that traders should use to translate foreign currency amounts into sterling,

  • the tax treatment of exchange differences arising on monetary assets or liabilities of the business,

  • businesses that prepare accounts in a non-sterling currency.

Exchange gains and losses that arise on the monetary assets or liabilities of companies are taxed or relieved under the loan relationship rules. See CFM60000 onwards.

This chapter contains the following:

Contents17 entries

  1. BIM39501Foreign exchange: introduction
  2. BIM39505Foreign exchange: rates of exchange
  3. BIM39510Foreign exchange: exchange rate for accounts purposes
  4. BIM39515Foreign exchange: exchange rate for tax purposes
  5. BIM39520Foreign exchange: monetary assets and liabilities: general principles
  6. BIM39525Foreign exchange: gains or losses: on monetary liabilities
  7. BIM39530Foreign exchange: gains or losses: capital or revenue: terms of borrowing
  8. BIM39535Foreign exchange: gains or losses: capital or revenue: use of money
  9. BIM39540Foreign exchange: gains or losses: capital or revenue: summary
  10. BIM39545Foreign exchange: monetary assets
  11. BIM39550Foreign exchange: monetary assets: practical approach
  12. BIM39555Foreign exchange: matched assets and liabilities
  13. BIM39560Foreign exchange: 'Marine Midland matching’
  14. BIM39565Foreign exchange: business uses the ‘offset method’
  15. BIM39570Foreign exchange: currency contracts
  16. BIM39575Foreign exchange: capital gains interactions
  17. BIM39580Foreign exchange: foreign currency accounts