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

(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.