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HMRC internal manual

General Insurance Manual

HM Revenue & Customs
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Technical provisions: background: Unexpired Risks Provision: exchange gains and losses

An unexpired risks provision (URP) is regarded as a money debt for the purposes of the loan relationships rules for periods beginning on or after 1 October 2002 (FA96/S100 (11)(b)(ii)).

Accordingly exchange gains and losses arising as a result of translation of the provision as disclosed in the accounts of the company fall to be taken into account as trading receipts or expenses.