Part 3Companies with small profits
Marginal relief
21Company with ring fence profits and other profits
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 that period consist of both ring fence profits and other profits.
2
The corporation tax charged on the company's taxable total profits of the accounting period is reduced by the total of—
a
the sum equal to the ring fence fraction of the ring fence amount, and
b
the sum equal to the standard fraction of the remaining amount.
3
In this Part “ring fence profits” has the same meaning as in Part 8 (see section 276).