20Company with only ring fence profitsU.K.
(1)This section applies if—
(a)a company is UK resident in an accounting period,
(b)it is not a close investment-holding company in the period,
(c)its augmented profits of the accounting period—
(i)exceed the lower limit, but
(ii)do not exceed the upper limit, and
(d)its augmented profits of the period consist exclusively of ring fence profits.
(2)The corporation tax charged on the company's taxable total profits of the accounting period is reduced by an amount equal to—
where—
R is the ring fence fraction,
U is the upper limit,
A is the amount of the augmented profits, and
N is the amount of the taxable total profits.
(3)In this Part “the ring fence fraction” means the fraction set by Parliament as the ring fence fraction for the purposes of this Part.