CGT proposals: selective simplification
Proposed changes to capital gains rules for companies may be too narrow and amount to "selective simplification", according to Baker Tilly.
HMRC recently started a consultation on plans to simplify rules on chargeable gains rules for companies who use a currency other than sterling for accounts purposes, as promised in Budget 2012.
Currently, companies that use a currency other than sterling for accounting purposes must translate amounts into sterling for chargeable gains purposes. This means that chargeable gains and allowable losses can include amounts attributable to currency exchange movements against sterling even where there is no underlying economic gain or loss to the company.