188ÌåÓý

FA1993 and FA1994 introduced a regime applicable to most companies for the taxation of of

• exchange differences on monetary assets and liabilities
• profits and losses on certain financial instruments.

These were known as the ‘FOREX rules� and included capital gains and losses on such assets.   CFM61010 provides an overview.

The regime was abolished in FA2002 so that for accounting periods beginning on or after 1 October 2002

• exchange differences are subject to the Loan Relationship rules, see CFM30000, and
• financial instruments (now called derivatives) are subject to the Derivatives rules, see CFM50000.

Guidance on the interaction between the pre-FA2002 FOREX rules and TCGA1992 is no longer included in this manual. If you need to consider the deleted guidance then this is available from National Archives.