Explanatory Notes

Introduction

Part 2: Calculation of liability in respect of profits

Chapter 4: Currency

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

55.This section sets out the third special rule. It is based on section 92C of FA 1993.

56.This special rule applies to a UK resident company whose accounts currency is not sterling, but which is not subject to the special rule in either section 6 or section 7. This rule applies, for example, if the company’s functional currency is the same as the currency used to prepare the accounts.

57.When this special rule applies, profits or losses (adjusted to comply with corporation tax rules) must be translated from the accounts currency into sterling.