Dawn’s boost for business.

In a move aimed at boosting the attractiveness of the UK as a base for international companies, paymaster general Dawn Primarolo has announced the abolition of rules requiring taxable profits to be computed in sterling in the next Finance Bill. The UK tax system normally requires taxable profits to be computed in sterling, although a company is allowed to elect to have its taxable trading profits based on the profits computed in a foreign currency. In future, if the accounts are drawn up in a foreign currency, the taxable profits will usually be based on the foreign currency profits.

Related reading