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Schedules

SCHEDULE 2U.K.Transitionals and savings etc

Part 3 U.K.Currency

Sterling equivalent of certain losses carried back to an earlier periodU.K.

11(1)This paragraph applies if—U.K.

(a)a loss of a company (arising in an accounting period ending on or after 1 April 2010) (“the loss”) is required by section 7, 8 or 9 to be translated from a currency other than sterling into its sterling equivalent, and

(b)the loss is to be a carried-back amount that is to be carried back to an accounting period beginning before 29 December 2007.

(2)Section 12 (sterling equivalents: carried-back amounts) does not have effect in relation to the loss.

(3)The translation must be made by reference to—

(a)the average exchange rate for the accounting period mentioned in sub-paragraph (1)(a), or

(b)the rate mentioned in sub-paragraph (4).

(4)That rate is—

(a)if the amount to be translated relates to a single transaction, an appropriate spot rate of exchange for the transaction, or

(b)if the amount to be translated relates to more than one transaction, a rate of exchange derived on a just and reasonable basis from appropriate spot rates of exchange for those transactions.

(5)In this paragraph “carried-back amount” has the same meaning as in Chapter 4 of Part 2 (see section 17(2)).