Part 4: Income tax, corporation tax and capital gains tax Section 34: Election of designated currency by UK resident investment company Details of the section
Subsection (1) states that the following subsections amend Chapter 4 of Part 2 of CTA 2010 (currency).
	Subsection (2) introduces amendments to section 9A CTA 2010.
	Subsection (3) substitutes new subsection 9A(2). This provides that an election for a particular designated currency only takes effect if the company is a UK resident investment company and the relevant conditions are satisfied at the time when the election is to take effect.
	Subsection (4) omits subsection 9A(3) as a consequential change.
	Subsection (5) inserts a new subsection 9A(9). This clarifies that the effect of a designated currency election is that profits and losses are calculated as if the designated currency of the company were its functional currency.
	Subsections (6) to (10) make a number of consequential changes to section 9B.
	Subsection (11) inserts a new subsection 9B(6A). This provides that ceasing to be a UK resident investment company constitutes a revocation event. The designated currency election will cease to have effect from the date of the revocation event.
	Subsections (12) and (13) make consequential changes in subsection 7(a) and section 17
	Subsections (14) to (17) provide that the changes made by the section have effect for periods of account beginning on or after 1 January 2016. Where a period of account period straddles 1 January 2016, it is to be split, with a new period of account being deemed to commence on that date for the purposes of the section. Accounts for the two deemed periods are assumed to have been prepared on the same basis as the actual accounts for the straddling period.