The Exchange Gains and Losses (Bringing into Account Gains or Losses) (Amendment) Regulations 2013
| Jurisdiction | UK Non-devolved |
| Citation | SI 2013/1843 |
| Year | 2013 |
2013 No. 1843
Corporation Tax
Capital Gains Tax
The Exchange Gains and Losses (Bringing into Account Gains or Losses) (Amendment) Regulations 2013
Made 18th July 2013
Laid before the House of Commons 22th July 2013
Coming into force 12th August 2013
The Treasury make the following Regulations in exercise of the powers conferred by sections 151E of the Taxation of Chargeable Gains Act 19921, paragraph 26(5) of Schedule 23 to the Finance Act 20022and sections 328(5) to (7) and 606(5) to (7) of the Corporation Tax Act 20093.
Citation and commencement
1.—(1) These Regulations may be cited as the Exchange Gains and Losses (Bringing into Account Gains or Losses) (Amendment) Regulations 2013 and come into force on 12th August 2013.
(2) These Regulations have effect in relation to a disposal of an asset made on or after 1st September 2013.
Amendment to the Exchange Gains and Losses (Bringing into Account Gains or Losses) Regulations 2002
2.—(1) The Exchange Gains and Losses (Bringing into Account Gains or Losses) Regulations 20024are amended as follows.
(2) In regulation 5 (calculation of the amount of any net gain or net loss for the purposes of regulation 4)—
(a)
(a) after paragraph (1) insert—
“1A The net gain or net loss must be calculated in the company’s relevant currency at the time of the disposal of the asset.”,
(b)
(b) after paragraph (2) insert—
“2A Where section 9C of the Corporation Tax Act 2010 (chargeable gains and losses of companies)5applies in relation to the asset disposed of, in determining the amounts representing accrued exchange gains or losses—
(a) exchange gains and losses must be calculated in the relevant currency of the company for the period in which the gains or losses arose,
(b) if there is a change in the company’s relevant currency before the asset is disposed of, the amount of any accrued exchange gains or losses must be translated (or if it has previously been translated under this paragraph, further translated) into the relevant currency of the company immediately following the change by reference to the spot rate of exchange for the day of the change, and
(c) if sub-paragraph (b) applies as a result of more than one change in the company’s relevant currency, it is to be applied in relation to each change in the order the changes were made (with the earliest first).”, and
(c)
(c) at the end insert—
“5 Subject to paragraph (6), for the purposes of this regulation and regulation 8, a company’s relevant currency at any time is its functional currency at that time.
6 If at any time—
(a) a company is a UK resident investment company, and
(b) the company has a designated currency which is different from its functional currency,
the company’s relevant currency at that time is that designated currency.
7 In this regulation—
“designated currency” means the currency a company elects as its designated currency under section 9A of the Corporation Tax Act 20106;
“functional currency” has the same meaning as in section 17(4) of that Act7;
“investment company” has the meaning given by section 17(3A) of that Act.”.
(3)...
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