The United Kingdom HM Revenue and Customs March 9 explained the taxation of profits and losses derived from derivative contracts used to hedge foreign exchange risk on investments. The explanation includes that: 1) all derivative contracts will be included within the scope of taxation; 2) exchange gains and losses will be disregarded; and 3) the new regulations will apply to items being hedged in connection to the transfer of qualified shares. The measures enter into force for companies entering into derivative contracts from April 1. [United Kingdom, Government Portal, 03/09/22]
Reference:
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