Foreign exchange: gains or losses: capital or revenue: summary
The following guidelines will cover most cases and are intended to ensure consistency of approach.
|Period of borrowing||Amount of borrowing|
|Less than 12 months||Revenue||Revenue|
|12 months or longer||Capital||‘Use’ test is relevant|
|Less than 12 months but renewable beyond then||Revenue but see BIM39530||Revenue but see BIM39530|
These guidelines should be applied flexibly and with common sense, for instance in deciding the nature of a borrowing for a period of less than, or not significantly more than, a year.