Section 371SI | Modification of sections 6 and 7 of CTA 2010 ^F1

(1)This section applies if—

(a)in accordance with section 371SH, the CFC is assumed to have made an election under section 9A of CTA 2010, but

(b)applying the corporation tax assumptions apart from this section, section 6 or 7 of CTA 2010 could not apply in relation to the CFC for a period of account because the CFC does not prepare its accounts in accordance with generally accepted accounting practice.

(2)If sterling is the CFC's designated currency for the period of account, assume that section 6 of CTA 2010 applies in relation to the CFC as if the words “in accordance with generally accepted accounting practice” were—

(a)omitted from subsection (1A)(a), and

(b)in subsection (2), inserted after “its accounts in sterling”.

(3)If the CFC's designated currency for the period of account is a currency other than sterling, assume that section 7 of CTA 2010 applies in relation to the CFC as if the words “in accordance with generally accepted accounting practice” were—

(a)omitted from subsection (1A)(a), and

(b)at step 1 in subsection (2), inserted after “that currency”.