PART 8A Profits arising from the exploitation of patents etc

CHAPTER 3 Relevant IP profits : cases mentioned in section 357A(7): no income from new IP

Total gross income of trade

357CA Total gross income of a trade
(1) For the purposes of this Part the “total gross income” of a trade of a company for an accounting period is the aggregate of the amounts falling within the Heads set out in—
(a) subsection (3) (revenue),
(b) subsection (5) (compensation),
(c) subsection (6) (adjustments),
(d) subsection (7) (proceeds from intangible fixed assets),
(e) subsection (8) (profits from patent rights).
(2) But the total gross income of the trade does not include any finance income (see section 357BG ).
Words in s. 357CA(2) substituted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 5
(3) Head 1 is any amounts which—
(a) in accordance with generally accepted accounting practice (“GAAP”) are recognised as revenue in the company's profit and loss account or income statement for the accounting period, and
(b) are brought into account as credits in calculating the profits of the trade for the accounting period.
(4) Where the company does not draw up accounts for an accounting period in accordance with GAAP, the reference in subsection (3)(a) to any amounts which in accordance with GAAP are recognised as revenue in the company's profit and loss account or income statement for the accounting period is to be read as a reference to any amounts which would be so recognised if the company had drawn up such accounts for that accounting period.
(5) Head 2 is any amounts of damages, proceeds of insurance or other compensation (so far as not falling within Head 1) which are brought into account as credits in calculating the profits of the trade for the accounting period.
(6) Head 3 is any amounts (so far as not falling within Head 1) which are brought into account as receipts under section 181 of CTA 2009 (adjustment on change of basis) in calculating the profits of the trade for the accounting period.
(7) Head 4 is any amounts (so far as not falling within Head 1) which are brought into account as credits under Chapter 4 of Part 8 of CTA 2009 (realisation of intangible fixed assets) in calculating the profits of the trade for the accounting period.
(8) Head 5 is any profits from the sale by the company of the whole or part of any patent rights held for the purposes of the trade which are taxed under section 912 of CTA 2009 in the accounting period.
Words in Pt. 8A Ch. 3 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 9 para. 3
Pt. 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)