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HMRC internal manual

Corporate Finance Manual

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HM Revenue & Customs
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Accounts drawn up in a foreign currency: FA 2009: transitional rules

Transitional rules

This guidance applies to accounting periods beginning on or after 29 December 2007

Transitional rules are required to deal with the position when losses cross over between the new rules and the old rules. This would occur in two situations:

Carry back losses

When losses originate in an accounting period to which these new rules apply but are carried back and offset against an accounting period when these new rules do not apply.

CFM64460 has detail on the specific rules.

Carry forward losses

When losses originated in an accounting period before these new rules applied but are carried forward and offset against profits in an accounting period to which these new rules apply.

CFM64470 has detail on the specific rules.

The transitional rules will apply to all companies unless an election is made to disapply them. CFM64480 has more detail on the election.