OT20321 - Corporation Tax General

Currency Differences. Bases used for conversion

It may happen that the basis used for exchange conversion for PRT purposes is different from that used in the accounts. Thus the S493 adjustment can be materially affected by differences in the methods used to convert the dollar proceeds to sterling for the purposes of the PRT values, the CT sales figures and the CT receipts figures.

It is considered that

(1) the application of ICTA88\s493 depends on the circumstances of each case

(2) any basis adopted should be applied consistently.