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Taxable exchange gains

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See Also

Analysis of gains | Foreign exchange differences


Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors


Background

This schedule categorises current period taxable gains and losses between trading and non trading income and tracks losses brought forward or deferred from the previous period. It also calculates the maximum unrealised long term gains which may be deferred. This schedule should not be used for accounting periods falling under the FA 2002 rules.

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Developing the schedule

This schedule is developed at the same time as the Foreign exchange differences schedule.

Erasing the schedule

Erasing this schedule will also automatically erase the Foreign exchange differences and Analysis of gains (pre 1997 computations) schedules.

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Completing the schedule

Taxable income

These cells are completed with the entries made in the Foreign exchange differences schedule, in respect of deferral amounts brought forward and the losses/gains identified on the parent schedule.

Override maximum deferral

Losses deferred can be restricted by completing the override section at the foot of Trading and Non-trading columns.

Deferred gains- Amounts referred to in s.141

The total amount that may be deferred under FA 1993 s 141, net of relevant losses, is derived by the system.

Exchange gains are eligible for deferral where

The maximum amount of gain which may be deferred, is the excess of the lower of B and C, over A, where

Where there are no net exchange gains, (because exchange losses exceed those gains), no deferral claim is possible. If A is nil (ie the company incurs a loss), a deferred claim of amount X can be made and will increase the amount of the loss.

The user can override the amount calculated in the data entry cell at the foot of this section.

Group member

If the company is a member of a group the group member flag should be set to Yes. This switches off the automatic calculation of the maximum deferral on an unrealised long term gain.

The maximum amount which may be deferred under FA1993 s 141 depends on the claimant company's share of the overall group net unrealised exchange gain. These figures are required to be calculated by reference to the overall group position. If the Group module is not being used these figures should be calculated and entered manually into the appropriate data entry cells on an individual company basis.

Recalc

Pressing the F-4 key calculates the maximum unrealised long term gains, which may be deferred.

If you wish to claim a deferral of any of your gains you will need to identify the specific gains on the Foreign exchange differences schedule.

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Standard sub-schedules

This schedule has no standard sub-schedules.

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Carry forward

On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation. This schedule should no longer be in use once the accounting period of the company falls within the FA 2002 rules.

 

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Related errors

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