CTM76260 - Local currency accounting (FA93 scheme): trade or part of trade for which election may be made

Regulation 3 SI1994/3230 provides that an election may be made for the whole of a trade whether carried on wholly or partly within the UK.

Regulation 4 provides that an election may be made for part of the trade where that trade is carried on wholly or in part through one or more overseas branches. In these circumstances, an election may be made for an identifiable part of the trade carried out through one or more branches situated in the same country. Normally, this will mean that all of the activities of the trade in one country will have the same local currency. However, if there are separately identifiable parts of the trade carried out in the same country, for example, retail business and wholesale business, then elections may be made for each of those identifiable parts.

Sterling will be used for any part of a trade for which there is no election.