[F1PART 8AU.K.Profits arising from the exploitation of patents etc
Textual Amendments
F1Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)
CHAPTER 3U.K.Relevant IP profits [F2: cases mentioned in section 357A(7): no income from new IP]
Textual Amendments
F2Words in Pt. 8A Ch. 3 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 3
Election for small claims treatmentU.K.
357CLCompanies eligible to elect for small claims treatmentU.K.
(1)A company may [F3make an election under this section] for small claims treatment for an accounting period if condition A or B is met in relation to the accounting period.
(2)Condition A is that the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed £1,000,000.
(3)Condition B is that—
(a)the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed the relevant maximum, and
(b)the company did not take Step 6 in section 357C(1) or 357DA(1) for the purpose of calculating the relevant IP profits of any trade of the company for any previous accounting period beginning within the relevant 4-year period.
(4)In subsection (3)(b) “the relevant 4-year period” means the period of 4 years ending immediately before the accounting period mentioned in subsection (3)(a).
(5)If [F4no other company is a related 51% group company of the company] in the accounting period, the relevant maximum is £3,000,000.
(6)If [F5one or more other companies are related 51% group companies of the company,] in the accounting period, the relevant maximum is—
where N is the number of [F6those related 51% group] companies in relation to which an election under [F7section 357A(1)] has effect for the accounting period.
(7)For an accounting period of less than 12 months, the relevant maximum is proportionately reduced.
(8)Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of this section.
F8(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3Words in s. 357CL(1) substituted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 10(2)
F4Words in s. 357CL(5) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(2)(a)
F5Words in s. 357CL(6) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(2)(b)(i)
F6Words in s. 357CL(6) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(2)(b)(ii)
F7Words in s. 357CL(6) substituted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 10(3)
F8S. 357CL(9) omitted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 13(2)(c)
357CMSmall claims amountU.K.
(1)This section applies where a company [F9makes an election under section 357CL] for small claims treatment for an accounting period.
(2)The small claims amount in relation to each trade of the company for the accounting period is—
(a)if the amount in subsection (3) is lower than the small claims threshold, 75% of the qualifying residual profit of the trade for the accounting period;
(b)in any other case, the amount given by—
where—
SCT is the small claims threshold, and
T is the number of trades of the company.
(3)The amount referred to in subsection (2)(a) is—
where QRP is the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period (but see subsection (4)).
(4)Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of subsection (3).
(5)If [F10no other company is a related 51% group company of the company] in the accounting period, the small claims threshold is £1,000,000.
(6)If [F11one or more other companies are related 51% group companies of the company, ] in the accounting period, the small claims threshold is—
where N is the number of [F12those related 51% group] companies in relation to which an election under section 357A has effect for the accounting period.
(7)For an accounting period of less than 12 months, the small claims threshold is proportionately reduced.
F13(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F9Words in s. 357CM(1) substituted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 11
F10Words in s. 357CM(5) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(3)(a)
F11Words in s. 357CM(6) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(3)(b)(i)
F12Words in s. 357CM(6) substituted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 13(3)(b)(ii)
F13S. 357CM(8) omitted (with effect in accordance with Sch. 1 para. 21 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 13(3)(c)