Taxation of Chargeable Gains Act 1992 section Sch 7AC para 39

Effect of FOREX matching regulations

Section Sch 7AC paragraph 39 ensures that foreign exchange matching regulations do not create taxable gains or losses on disposals that are already exempt from capital gains tax under Schedule 7AC.

• Where a disposal qualifies for exemption under Schedule 7AC, no gain or loss arises under the FOREX matching regulations
• This prevents the foreign exchange rules from overriding the exemption that Schedule 7AC provides
• The FOREX matching regulations are those made under Schedule 15 to the Finance Act 1993, which provide an alternative method for calculating exchange gains and losses
• The effect is to ensure consistency: if a gain on a disposal would not be chargeable under this Schedule, the FOREX rules cannot create a separate taxable gain or allowable loss on that same disposal