Corporation Tax Act 2010 section 9

Non-UK resident company preparing return of accounts in currency other than sterling

Section 9 deals with how a non-UK resident company within the charge to corporation tax must convert its profits or losses into sterling when it prepares its accounts in a foreign currency.

• This section applies to non-UK resident companies (typically trading in the UK through a permanent establishment) that prepare their tax return accounts in a currency other than sterling — referred to as the "accounts currency".
• Profits or losses calculated under generally accepted accounting practice for corporation tax purposes must first be worked out in the accounts currency and then converted into their sterling equivalent under the rules in section 11.
• Where this section applies, any sterling threshold or amount referred to in the Corporation Tax Acts is treated as if it were expressed in the company's accounts currency, so that the company can apply those figures directly when computing its results.
• The term "return of accounts" means the accounts that a company is required to submit as part of its company tax return under paragraph 3 of Schedule 18 to the Finance Act 1998.