Where a person borrows in foreign currency and, on repaying the loan, incurs a loss due to the depreciation of sterling against that other currency, the loss is allowable in computing the profits of the trade if the borrowing represents a temporary financial facility used in the carrying on of the trade. If the borrowing by a company forms part of its capital base, such a loss would not, in principle, be deductible as it would represent an item of capital expenditure. This was the decision reached
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:31