166 Anti-avoidance: change of accounting period.U.K.
(1)This section applies where—
(a)a company changes the date on which any accounting period is to begin,
(b)if the change had not been made an exchange gain or gains not accruing to the company would have accrued or an exchange loss or losses accruing to the company would not have accrued or an exchange gain or gains accruing would have been bigger or an exchange loss or losses accruing would have been smaller, and
(c)the change mentioned in paragraph (a) above was made for the purpose, or for purposes which include the purpose, of securing the non-accrual or reduction of the gain or gains or the accrual or increase of the loss or losses.
(2)In such a case the inspector or on appeal the Commissioners concerned—
(a)may in arriving at the exchange gains and losses accruing to the company assume that there had been no such change as is mentioned in subsection (1)(a) above, and
(b)may accordingly make, with regard to the accounting period mentioned in subsection (1)(a) above, such adjustment to the company’s corporation tax liability as is just and reasonable.
(3)For the purposes of this section—
(a)an exchange gain is an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain;
(b)an exchange loss is an exchange loss of a trade or an exchange loss of part of a trade or a non-trading exchange loss.