Corporation Tax Act 2010 (c. 4)

[F1 PART 8B U.K. Trading profits taxable at the Northern Ireland rate

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

CHAPTER 15 U.K. Profits arising from the exploitation of patents etc

“Relevant Northern Ireland IP profits” U.K.

357VB Relevant Northern Ireland IP profits: SMEs [F2 that are Northern Ireland employers] U.K.

(1) This section applies if—

(a) the company is a Northern Ireland company in the relevant period by virtue of the [F3 SME (Northern Ireland employer) condition] in section 357KA, and

(b) the trade is not an excluded trade.

(2) The company's “relevant Northern Ireland IP profits” are its relevant IP profits of the trade for the period but—

(a) calculated without taking into account any amounts which are—

(i) treated by section 747 of CTA 2009 as receipts or expenses of the trade for the period, but

(ii) do not under section 357OA form part of the Northern Ireland profits or Northern Ireland losses of the trade for the period, and

(b) excluding so much of its relevant IP profits as are attributable to a qualifying IP right or an exclusive licence in respect of a qualifying IP right which (in either case) is held by the company for the purposes of an excluded activity.

Textual Amendments

F2 Words in s. 357VB heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 12(2)

F3 Words in s. 357VB(1)(a) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 12(3)

357VC Relevant Northern Ireland IP profits: [F4 SMEs that are not Northern Ireland employers and] large companies U.K.

(1) This section applies if—

(a) the company is a Northern Ireland company in the relevant period by virtue of [F5 the SME (election) condition or] the large company condition in section 357KA, and

(b) the trade is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).

(2) The company has “relevant Northern Ireland IP profits” for the period only if IP-related profits that (in accordance with Chapters 6 to 8) form part of its Northern Ireland profits or Northern Ireland losses for the period amount to Northern Ireland profits (rather than losses).

(3) The company's “relevant Northern Ireland profits” for the period are the appropriate proportion of the relevant IP profits.

(4) The “appropriate proportion” is—

where—

NI is so much of the IP-related profits as (in accordance with Chapters 6 to 8) forms part of its Northern Ireland profits;

P is the IP-related profits.

(5) In this section the “IP-related profits” means the profits of the company's trade for the accounting period attributable to—

(a) qualifying IP rights held by the company, or

(b) exclusive licences held by the company in respect of qualifying IP rights.]

Textual Amendments

F4 Words in s. 357VC heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 13(2)

F5 Words in s. 357VC(1)(a) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 13(3)