Corporation Tax Act 2010 section 16

Sections 13(2) and 15(5): profit against which carried-forward amount to be set off

Section 16 clarifies how to identify the relevant profit figure when a carried-forward amount is treated as arising in a later accounting period than the one in which it actually arose, for the purposes of the currency conversion rules in sections 13 and 15.

• This section applies where a carried-forward amount is treated as arising in a later accounting period than the one in which it actually arose
• Because the amount is treated as arising later, it becomes deductible in calculating the profit of that later period
• When sections 13(2) and 15(5) refer to "the profit against which a carried-forward amount is to be set off", this means the profit of the later period before the deduction is made
• The deduction itself must be disregarded when determining the profit figure for currency conversion purposes