Taxation of Chargeable Gains Act 1992 section 151E

Exchange gains and losses from loan relationships: regulations

Section 151E gives the Treasury the power to make regulations that bring certain foreign exchange gains or losses into account for capital gains tax purposes, where those amounts have been excluded from the normal loan relationships rules.

• The Treasury can make regulations to bring exchange gains or losses into the capital gains tax regime where they have been excluded from the corporation tax loan relationships rules under section 328 of CTA 2009
• Exchange gains and losses are those arising from fluctuations in currency values on loan relationships, as defined in section 475 of CTA 2009
• The regulations may specify how the relevant amounts are to be calculated, including which currency should be used as the reference point for the calculation
• The regulations can make different provision for different circumstances and may be conditional upon an election being made or other specified conditions being met