Corporation Tax Act 2010 section 9C

Chargeable gains and losses of companies

Section 9C sets out how chargeable gains and losses on disposals of ships, aircraft, shares and interests in shares are calculated when a company's relevant currency is, or has been, a currency other than sterling.

• The section applies when a company disposes of a ship, aircraft, shares or an interest in shares, and at any point during ownership the company's relevant currency was not sterling
• If the company's relevant currency at the time of disposal is not sterling, the gain or loss must first be calculated in that relevant currency and then converted to sterling at the spot exchange rate on the day of disposal
• Any allowable expenditure incurred in a currency other than the company's relevant currency must be translated into the relevant currency at the spot rate on the date incurred, and retranslated each time the relevant currency changes during ownership
• The company's relevant currency is normally its functional currency, but for a UK resident investment company that has made a designated currency election, the designated currency takes precedence