ECL23000 - Computation step 2: UK revenue

UK Revenue

UK Revenue includes the person’s turnover for that period and any other amounts, not included in turnover, which, in accordance with UK GAAP, are recognised as revenue in the person’s profit and loss account or income statement for the accounting period.

Please note that this is the person’s entire UK revenue in accordance with UK GAAP, it is not simply the turnover of the regulated activities (see [ECL12200]).

Where a person does not draw up accounts for a relevant accounting period in accordance with GAAP, you use the amount that would have otherwise been recognised as revenue in the person’s profit and loss account or income statement for the accounting period if the person had drawn up such accounts in accordance with UK GAAP for that accounting period (s57(8) FA22)

UK resident

If the person is a UK resident, then their UK revenue is the sum of their total revenue less any revenue which is just and reasonably apportioned to the activities of any permanent establishment in a territory outside the United Kingdom (s57(2) FA22).

Non-UK resident

If the person is non-UK resident, then their UK revenue is the sum of their total revenue which is just and reasonably apportioned to the activities of any permanent establishment (see Chapter 2 of Part 24 of CTA 2010) in the United Kingdom (s57(3) FA22).

For non-UK resident persons carrying on business in the United Kingdom by virtue of regulation 9(4) of the Money Laundering Regulations (casinos which provide facilities for remote gambling), UK revenue also includes revenue which is just and reasonably apportioned to activities in respect of which a charge to remote gaming duty arises (see section 155 of FA 2014), and revenue which is not included in the person’s UK revenue by virtue of subsection (3). This is likely to only affect persons supervised by the Gambling Commission.

Ignored Amounts

The UK revenue calculations ignore distributions within the meaning of CTA 2010 that

  • Are received from a company that is connected with that person in accordance with sections 1122 and 1123 of CTA 2010,

and

  • Are not made in respect of shares or other assets, profits on the sale of which would be a trading receipt of that person.