Corporation Tax Act 2010 section 10

The equivalent in another currency of a sterling amount

Section 10 sets out how to determine the exchange rate to use when a sterling amount needs to be translated into another currency for the purposes of calculating a company's profits or losses.

• When a company calculates its profits or losses in a currency other than sterling, any sterling amounts must be translated using an approved method.
• The default approach is to use the average exchange rate for the accounting period in question.
• For a single transaction, an appropriate spot exchange rate for that transaction may be used instead.
• For multiple transactions, a rate derived on a just and reasonable basis from the appropriate spot rates for those transactions may be used.