Corporation Tax Act 2010 section 5

Basic rule: sterling to be used

Section 5 establishes the fundamental requirement that corporation tax computations must be carried out in sterling, while signposting exceptions for companies that operate or prepare accounts in other currencies.

• All income and chargeable gains for corporation tax purposes must be calculated and expressed in sterling for each accounting period.
• Exceptions exist for UK resident companies that operate in sterling but prepare accounts in another currency, or that operate and/or prepare accounts in a non-sterling currency.
• A further exception applies to non-UK resident companies that prepare their accounts in a currency other than sterling.
• Separate rules govern how chargeable gains are to be calculated where the sterling requirement applies.