Corporation Tax Act 2010 section 7

UK resident company operating in currency other than sterling and preparing accounts in another currency

Section 7 deals with how UK resident companies that operate in a non-sterling functional or designated currency must calculate their profits or losses for corporation tax purposes.

• A UK resident company (other than an investment company) that prepares accounts in one currency but identifies a different, non-sterling currency as its functional currency must follow special calculation rules for corporation tax.
• UK resident investment companies are similarly covered where they have a non-sterling designated currency for the period, or, failing that, identify a non-sterling functional currency in their accounts.
• Profits or losses must first be calculated in the relevant non-sterling currency as if the company had prepared its accounts in that currency, and then converted into sterling equivalents.
• Any sterling amounts or thresholds stated in the Corporation Tax Acts are treated as if expressed in the company's relevant non-sterling currency, ensuring consistency throughout the tax computation.