The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
A UK company doing business overseas is likely to have to deal with transactions in foreign currencies, leading to foreign exchange movements where the transaction is translated into a sterling equivalent in the accounts.
Foreign exchange gains and losses can arise where the accounts of a branch are consolidated with those of the UK company, where the branch accounts are prepared in a different currency and no election has been made to exempt the branch profits and losses from UK tax (see the Foreign branch exemption ― overview guidance note). For corporation tax purposes, the profits of a UK company, including those arising overseas, or in a permanent establishment, must be computed and expressed in sterling.
Exchange gains and losses can also arise:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.