Where a claimant acquires or leases an asset in return for the payment of foreign currency he will nevertheless normally have to make up his accounts for tax purposes in terms of sterling and claim allowances accordingly. There appears to be no one accepted method of computing the sterling equivalent of foreign-currency expenditure for capital allowance purposes, although it should be noted that in HMRC's Capital Allowances Manual it is expressed that as a general rule expenditure incurred in a foreign currency should be translated at the ‘spot’ exchange rate for the date on which that expenditure is incurred for capital allowance purposes.

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