Foreign denominated losses

Financial Secretary to the Treasury recently announced that there would be changes to tax legislation responding to two different issues that have come to light as a result of recent turbulence in the financial markets.

A draft clause on the first of the issues relating to preference shares has previously been released.

The draft clause relating to the second issue foreign denominated losses has now been released along with the accompanying draft explanatory notes.

These changes will amend FA 1993 s 92 to 92E and insert new legislation so that companies that compute their profits for corporation tax purposes in currencies other than sterling carry forward or back any unused losses to offset future or past profits in those currencies instead of sterling.

Comments on this draft clause or on the accompanying explanatory note...