CTA09/S606

Exchange differences

CTA09/S606 puts it beyond doubt that the profits and losses arising to a company on its derivative contracts include exchange gains and losses.

Position for periods of account beginning on or after 1 January 2016

For company periods of account beginning on or after 1 January 2016, the effect of amendments to CTA09/S595 and 597 made by F(2)A15 is that amounts, including exchange differences, initially recognised as items of other comprehensive income, rather than as items of profit or loss, are not brought into account for tax. However, amounts are taxed if transferred from OCI to become items of profit or loss.

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