If a company has a bank account in euros and there is a large fx gain (around £50k) arising from translation of closing balance at closing fx rate, is the gain taxable for corporation tax? i can see the logic in that if the company converted the currency into £ it would realise that gain and looked up the FRS102 but i just wanted to confirm my understanding as i havent dealt with such big gains before and has a massive impact on tax. transactions in that account are recorded using spot rates. thanks.
29th Jul 2021
foreign exchange gain on translation of
foreign currency bank account closing balance - taxable?
Share this content