Part 6Relationships treated as loan relationships etc
Chapter 2Relevant non-lending relationships
Exclusions
486Exclusion of exchange gains and losses in respect of tax debts etc
1
No exchange gains or losses arise for the purposes of this Chapter if the money debt by reference to which the relevant non-lending relationship exists (“the relevant money debt”) is an amount of tax payable under the law of the United Kingdom.
2
If the relevant money debt is an amount of tax payable under the law of a territory outside the United Kingdom, exchange gains or losses arise for the purposes of this Chapter only so far as a deduction in respect of the tax falls to be made under section 811 of ICTA (double taxation relief: deduction for foreign tax where no credit allowable).
3
No exchange gains or losses arise for the purposes of this Chapter if the relevant money debt is an amount which would be deductible apart from—
a
a statutory provision other than section 53 (capital expenditure), or
b
a rule of law.
4
The reference in subsection (3) to an amount being deductible is a reference to its being deductible—
a
as an expense in calculating trading profits,
b
as expenses of management within section 1219 (expenses of management of a company’s investment business), or
c
as expenses falling to be brought into account at Step 1 of section 76(7) of ICTA (expenses of insurance companies).