Corporation Tax Act 2010 section 17

Interpretation of Chapter

Section 17 defines key terms used throughout the chapter on currency rules for corporation tax, including what counts as a company's accounts, and the meanings of carried-back amounts, carried-forward amounts, investment company, functional currency, and tax calculation currency.

• A UK resident company's "accounts" means its Companies Act 2006 annual accounts, or equivalent accounts required by its country of incorporation, or failing both, the closest equivalent to Companies Act accounts.
• "Carried-back amount" and "carried-forward amount" are defined by reference to specific loss relief provisions, covering trade losses, property losses, insurance company deficits, loan relationship deficits, intangible asset losses, patent income relief, and management expenses.
• An "investment company" is one whose business consists wholly or mainly of making investments and whose principal income derives from those investments.
• The "functional currency" is the currency of the primary economic environment in which the company (or part of its business) operates, while the "tax calculation currency" is the currency in which the company must calculate its profits or losses for corporation tax purposes under generally accepted accounting practice.

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