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Should it be permitted to use other currencies for computations?
The government has published a consultation document on the options for simplifying chargeable gains rules where tax and economic gains and losses are not aligned.
Under current rules, where companies have a non-sterling currency for accounting purposes they must translate amounts into sterling for chargeable gains purposes.
As a result, gains and losses can include amounts attributable to currency exchange movements against sterling even where there is no underlying economic gain or loss to the company.
The consultation asks whether this requirement should continue or if businesses should be permitted to use other currencies for these computations.
Responses should be emailed no later than 15 October.
