CG44000 | FOREX: rules applying up to 2002

FA1993 and FA1994 introduced a regime applicable to most companies for the taxation of of

• exchange differences on monetary assets and liabilities

• profits and losses on certain financial instruments.

These were known as the ‘FOREX rules’ and included capital gains and losses on such assets. CFM61010 provides an overview.

The regime was abolished in FA2002 so that for accounting periods beginning on or after 1 October 2002

• exchange differences are subject to the Loan Relationship rules, see CFM30000, and

• financial instruments (now called derivatives) are subject to the Derivatives rules, see CFM50000.

Guidance on the interaction between the pre-FA2002 FOREX rules and TCGA1992 is no longer included in this manual. If you need to consider the deleted guidance then this is available from National Archives.