OT20340 - Corporation Tax General

Non-sterling functional currency.

A company’s functional currency is the currency of the primary economic environment in which the company operates, so long as certain conditions relating to the company's accounting policies are satisfied.

Rules were introduced in 1993, which initially applied only to trading companies. Those rules apply to all companies for accounting periods beginning on or after 1 January 2000.

The general area of non-sterling functional currency is outwith the scope of this Manual.