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HMRC internal manual

Business Income Manual

Foreign exchange: contents

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: