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Amendments made: No. 74, in page 303, line 26, leave out 'Schedule' and insert 'Chapter'.
No. 75, in page 303, line 38, leave out 'Schedule' and insert 'Chapter'.—[Dawn Primarolo.]
Schedule 10
Amendments made: No. 76, in page 308, line 40, after 'debit' insert
'(in the case of an asset) or credit (in the case of a liability)'.
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No. 77, in page 308, line 42, after 'credit' insert
'(in the case of an asset) or debit (in the case of a liability)'.
No. 78, in page 309, line 6, after 'credit' insert
'(in the case of an asset) or debit (in the case of a liability)'.
No. 79, in page 309, line 8, after 'debit' insert
'(in the case of an asset) or credit (in the case of a liability)'.
No. 80, in page 310, line 4, leave out paragraph 10 and insert—
'10 Omit section 92A of that Act (convertible securities etc: debtor relationships).'.
No. 81, in page 311, line 11, after 'instruments' insert 'or equity instruments'.
No. 82, in page 322, line 1, leave out from beginning to 'derive' in line 10 and insert—
'Power to make further provision by regulations
17C (1) The Treasury may by regulations make provision—
(a) excluding amounts of a prescribed description from paragraph 17B(1);
(b) requiring amounts of a prescribed description that do not fall within paragraph 17B(1) (by virtue of regulations under paragraph (a) above or otherwise) to be brought into account in determining a company's profit or loss for a period in prescribed circumstances;
(c) as to the manner in which any such amounts are to be brought into account.
(2) The regulations may (in particular) make provision by reference to the fact that amounts'.
No. 83, in page 322, line 16, leave out from beginning to end of line 18 and insert—
'( ) Regulations under this paragraph may apply, exclude or modify any of the provisions of this Schedule in relation to cases for which provision is made by the regulations.".'.
No. 84, in page 329, line 24, leave out paragraphs 77 and 78 and insert—
'77 For sections 92 to 94AB of the Finance Act 1993 (c. 34) (corporation tax: currency) substitute—
"Corporation tax: currency
92 The basic rule: sterling to be used
(1) For the purposes of corporation tax the profits of a company for an accounting period must be computed and expressed in sterling.
(2) The following sections contain further provision as to the application of subsection (1) to certain profits or losses falling to be computed in accordance with generally accepted accounting practice—
section 92A (company operating in sterling and preparing accounts in another currency);
section 92B (company operating in currency other than sterling and preparing accounts in another currency);
section 92C (company preparing accounts in currency other than sterling). 92A Company operating in sterling and preparing accounts in another currency (1) This section applies if, for a period of account, in accordance with generally accepted accounting practice, a company resident in the United Kingdom—
(a) prepares its accounts in a currency other than sterling, and
(b) in those accounts identifies sterling as its functional currency.
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(2) Profits or losses of the company for the period that fall to be computed in accordance with generally accepted accounting practice for corporation tax purposes must be computed in sterling as if the company prepared its accounts in sterling. 92B Company operating in currency other than sterling and preparing accounts in another currency
(1) This section applies if, for a period of account, in accordance with generally accepted accounting practice—
(a) a company resident in the United Kingdom prepares its accounts in one currency,
(b) in those accounts it identifies another currency as its functional currency, and
(c) that currency is not sterling.
(2) Profits or losses of the company for the period that fall to be computed in accordance with generally accepted accounting practice for corporation tax purposes must be computed in sterling by—
(a) computing those profits or losses in the functional currency as if the company prepared its accounts in that currency, and
(b) taking the sterling equivalent of those profits or losses.
(3) Where this section applies, it shall be assumed that any sterling amount mentioned in the Corporation Tax Acts is its equivalent expressed in the functional currency of the company. 92C Company preparing accounts in currency other than sterling
(1) This section applies in relation to a company resident in the United Kingdom if, for a period of account—
(a) the company prepares its accounts in a currency other than sterling (the "accounts currency"), and
(b) neither section 92A nor section 92B applies.
(2) This section also applies in relation to a company that is not resident in the United Kingdom if, for a period of account, the company prepares its return of accounts in a currency other than sterling (the "accounts currency").
(3) Profits or losses of the company for the period that fall to be computed in accordance with generally accepted accounting practice for corporation tax purposes must be computed in sterling by—
(a) computing those profits or losses in the accounts currency, and
(b) taking the sterling equivalent of those profits or losses.
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