Section 486 — Corporation Tax Act 2009: Exclusion of exchange gains and losses in respect of tax debts etc

Exclusion of exchange gains and losses in respect of tax debts etc 486 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 112 of TIOPA 2010 (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 ordinary BLAGAB management expenses within the meaning of section 77 of FA 2012 (insurance companies carrying on basic life assurance and general annuity business).