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A practical guide to recent legislation which has changed the basis on which foreign exchange gains and losses are taxed. The text sets out the recent legislation and rules in full, aiming to unravel the complexities of both the old and the current system. Major pitfalls caused by current legislation are identified and advice is given on how to avoid them. The text of relevant legislation from Finance Acts 1995 and 1997 and Inland Revenue Explanatory Statements are also contained within the text.