Section 9A | Designated currency of a UK resident investment company ^F1

(1)The designated currency of a UK resident investment company is the currency which the company elects as its designated currency.^F1

(2)An election under this section by a company (“X”) takes effect only if, at the time when it is to take effect (see section 9B(1))—^F1F2

(a)X is a UK resident investment company, and^F1F2

(b)Condition A or Condition B is met.^F1F2

(2A)For the purposes of determining whether an election under this section takes effect, ignore the effect (if any) of Part 4 of TIOPA 2010 (transfer pricing).^F1F3

(3)Repealed^F4F1

(4)Condition A is that a significant proportion of X's assets and liabilities are denominated in the currency.^F1

(5)Condition B is that—^F1

(a)the currency is the functional currency of another company, and^F1

(b)it is reasonable to assume that the two companies will meet the consolidation condition.^F1

(6)X and another company (“Y”) meet the consolidation condition at any time if—^F1

(a)for a period which includes that time, the financial results of X are comprised in financial statements of Y's group prepared in accordance with acceptable accounting practice, or^F1

(b)if no financial statements of the group are prepared in accordance with acceptable accounting practice for a period which includes that time, the financial results of X would be comprised in financial statements of Y's group for a period which includes that time if such statements were prepared in accordance with international accounting standards.^F1

(7)In subsection (6)—^F1F5F6

“ financial statements of the group ” means consolidated financial statements of Y and its subsidiaries (and for this purpose “subsidiaries” has the meaning given by international accounting standards),

“Y's group” means a worldwide group of which Y is the ultimate parent within the meaning of Part 10 of TIOPA 2010,

“ acceptable accounting practice ” means—

(a)international accounting standards,

(b)UK generally accepted accounting practice, or

(c)accounting practice which is generally accepted in the country in which Y is resident.

(8)A currency is the designated currency of X for a period of account if the election in respect of that currency has effect throughout that period (see section 9B).^F1

(9)In relation to any period of account for which a currency is X's designated currency as a result of an election under this section, profits or losses of X that fall to be calculated in accordance with generally accepted accounting practice for corporation tax purposes must be calculated as if—^F7

(a)the designated currency were the functional currency of the company, and^F7

(b)no part of X's business could, in accordance with generally accepted accounting practice, be regarded as having another currency as its functional currency.^F7