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Legislation
Corporation Tax Act 2010

Crossheading The currency to be used in tax calculations

  • Section 5 Basic rule: sterling to be used
  • Section 6 UK resident company operating in sterling and preparing accounts in another currency
  • Section 7 UK resident company operating in currency other than sterling and preparing accounts in another currency
  • Section 8 UK resident company preparing accounts in currency other than sterling
  • Section 9 Non-UK resident company preparing return of accounts in currency other than sterling
  • Section 9A Designated currency of a UK resident investment company
  • Section 9B Period for which an election under section 9A has effect
  • Section 9C Chargeable gains and losses of companies
  1. The currency to be used in tax calculations
  2. UK resident company preparing accounts in currency other than sterling

Section 8 | UK resident company preparing accounts in currency other than sterling

From legislation.gov.uk

(1)This section applies if, for a period of account—

(a)a UK resident company prepares its accounts in a currency other than sterling (the “accounts currency”), and

(b)neither section 6 nor section 7 applies.

(2)Profits or losses of the company for the period that fall to be calculated in accordance with generally accepted accounting practice for corporation tax purposes must be calculated in sterling as follows—

Step 1Calculate those profits or losses in the accounts currency.

Step 2Take the sterling equivalent of those profits or losses (see section 11).

(3)If this section applies, assume that any sterling amount mentioned in the Corporation Tax Acts is its equivalent expressed in the accounts currency of the company.

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