As a general rule, where exchange gains and losses are disregarded because an asset is matched under the rules discussed in the preceding section, those exchange gains and losses must be brought back into account under the EGLBAGL Regulations when the matched asset is disposed of. The exchange gains and losses are generally brought back into account as capital gains items when the matched asset is shares, but may be brought back as loan relationship debits and credits when the matched asset is a ship or aircraft.

However, there are two key and commonly encountered exceptions, which will be covered first.

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