{
  "url": "https://openlegislation.uk/exchange-gains-and-losses-miscellaneous-modifications-regulations-2000/note",
  "json_url": "https://openlegislation.uk/exchange-gains-and-losses-miscellaneous-modifications-regulations-2000/note.json",
  "legislation": "uksi/2000/3315",
  "legislation_title": "The Exchange Gains and Losses (Miscellaneous Modifications) Regulations 2000",
  "legislation_url": "https://openlegislation.uk/exchange-gains-and-losses-miscellaneous-modifications-regulations-2000",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nSections 105 and 106 of the Finance Act 2000 (c. 17) (use of local currency) (“sections 105 and 106”) provide for new rules as to how companies calculate their profits for tax purposes where they prepare their accounts in a currency other than sterling or prepare their accounts from financial statements kept in such a currency.\nRegulations 2 to 9 of these Regulations modify regulations made under Chapter II of Part II of the Finance Act 1993 (c. 34) in consequence of the provisions of sections 105 and 106. The modifications have effect in accordance with section 167(5A)(b) and (5C) of the Finance Act 1993 in relation to any accounting period of a company beginning on or after 1st January 2000 for which sections 105 and 106 have effect. Regulation 11 of these Regulations modifies the effect of section 146 of the Finance Act 1993 (early termination of currency contract) (“section 146”).\nRegulation 1 provides for citation, commencement and effect.\nRegulations 2 to 5 modify the Exchange Gains and Losses (Transitional Provisions) Regulations 1994 (S.I. 1994/3226) in consequence of sections 105 and 106.\nRegulations 6 to 9 modify the Exchange Gains and Losses (Alternative Method of Calculation of Gain or Loss) Regulations 1994 (S.I. 1994/3227) (“the 1994 Regulations”) in consequence of sections 105 and 106. In particular, regulation 8 modifies regulation 5 of the 1994 Regulations so as to provide for what are eligible assets in relation to both companies which prepare their accounts as a whole in sterling and those which prepare them in a currency other than sterling.\nRegulation 10 revokes Part X of the European Single Currency (Taxes) Regulations 1998 (S.I. 1998/3177) to the extent that it is not previously revoked.\nRegulation 11 modifies the effect of section 146 so that, where regulation 5(2)(b) of the 1994 Regulations applies so as to reduce the amount of an initial exchange gain or initial exchange loss which would accrue to a company for the current period as respects a liability, that section applies as if that reduction had not been made.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2000/3315/note",
    "retrieved_at": "2026-10-29T08:08:32.891280+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}