Part 2Calculation of liability in respect of profits
Chapter 4Currency
The currency to be used in tax calculations
6UK resident company operating in sterling and preparing accounts in another currency
(1)
This section applies if, for a period of account, in accordance with generally accepted accounting practice, a UK resident company F1(other than a UK resident investment company)—
(a)
prepares its accounts in a currency other than sterling, and
(b)
in those accounts identifies sterling as its functional currency.
F2(1A)
This section also applies if, for a period of account, a UK resident investment company—
(a)
in accordance with generally accepted accounting practice, prepares its accounts in a currency other than sterling, and
(b)
either—
(i)
has sterling as its designated currency for that period of account (see sections 9A and 9B), or
(ii)
if it does not have a designated currency for that period, in those accounts identifies sterling as its functional currency in accordance with generally accepted accounting practice.
(2)
Profits or losses of the company for the period that fall to be calculated in accordance with generally accepted accounting practice for corporation tax purposes must be calculated in sterling as if the company prepared its accounts in sterling.