Vimal Tilakapala

VIMAL TILAKAPALA of Allen & Overy considers the key aspects of the new foreign exchange gains and losses rules.

THE CURRENT RULES for taxing exchange gains and losses will, following enactment of the draft rules contained in the Finance Bill, change fundamentally for accounting periods beginning on or after 1 October 2002. Although the proposed reform is radical and requires significant legislative change, it introduces a welcome degree of simplification to a complex area resulting in a far more understandable and logical régime.