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HMRC internal manual

Corporate Finance Manual

HM Revenue & Customs
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Understanding corporate finance: overview of ‘understanding corporate finance’

Overview of corporate finance

CFM1000 explains what we mean by the term ‘corporate finance’. For the purposes of this manual it refers to the way that companies raise funds and manage money, including transactions involving foreign exchange, and the use of financial instruments such as derivatives to manage the risks and opportunities relating to their financial transactions.

This section of the Corporate Finance Manual explains the commercial background to corporate finance, and is intended as a foundation for understanding the corporation tax rules which are set out later in the manual. It does not cover the accounting treatment of corporate finance, for which you should read CFM20000.

There is additional material on the commercial background to certain of the more specialised areas of corporate finance in other sections of the CFM. See, for example, the guidance on securitisation at CFM72000, and on repos at CFM46000.

Our LBS Trade Sector Advisers can provide you with advice if you require help in dealing with a specific case.

The material in this section is divided into four parts.

Raising finance

CFM11000 onwards explains how companies raise finance, in particular through borrowing and issuing securities.

Foreign exchange

CFM12000 onwards explains the issues that foreign exchange transactions present to companies


CFM13000 onwards explains what derivatives are and how they are used by companies, in particular to manage risks.


CFM14000 onwards explains the regulatory framework within which financial services operate, which is an important part of the context for the material in this section of the Corporate Finance Manual.