SCHEDULES

SCHEDULE 24ASSUMPTIONS FOR CALCULATING CHARGEABLE PROFITS, CREDITABLE TAX AND CORRESPONDING UNITED KINGDOM TAX OF FOREIGN COMPANIES

F1 Exchange gains and losses

14

(1)

This paragraph applies where—

(a)

by virtue of section 747A the company’s chargeable profits for an accounting period are to be computed and expressed in a particular currency (the relevant currency),

(b)

in an accrual period an asset or contract was held, or a liability was owed, by the company, and

(c)

the accrual period falls within or constitutes the accounting period concerned.

(2)

It shall be assumed that—

(a)

the local currency for the purposes of sections 125 to 127 of the M1Finance Act 1993 is the relevant currency, and

(b)

section 149 of that Act (local currency to be used) does not apply as regards the accrual period concerned.