Corporation Tax Act 2010 section 937M

Foreign currency accounting

Section 937M requires that economic profits and losses under the risk transfer scheme provisions are calculated in the company's tax calculation currency for the relevant accounting period.

• When determining amounts a company may or may not bring into account under the risk transfer scheme rules, all economic profits and losses must be computed in the company's tax calculation currency.
• The tax calculation currency is specific to each company and each accounting period — it is not necessarily sterling.
• The definition of "tax calculation currency" follows the meaning given in section 17(5) of CTA 2010.
• This ensures consistency in the currency used when measuring profits and losses for the purposes of these provisions.