What exchange rate should I use to convert euro accounts and computations into sterling to complete the tax return?
A. If your company’s accounts are completed in euro, you can compute the company’s corporation tax (CT) profit in euro and translate the result into sterling for the self-assessment form. The rules about which exchange rate you should use to do this have been simplified by Finance Act 2002. For company accounting periods beginning on or after 1 October 2002: You should use the euro/sterling exchange rate that would be used if the company’s accounts were translated into sterling in accordance with generally accepted accounting principles. This might be the exchange rate for the last day of the company’s accounting period, or an average exchange rate for the period. Your company’s accountants or auditors should be able to advise which is the more appropriate in your company’s particular case. Whichever you choose, you should use a consistent approach in successive accounting periods. For accounting periods beginning before 1 October 2002: You should use the euro/sterling exchange rate fo
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