[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
Election for small claims treatmentU.K.
357CLCompanies eligible to elect for small claims treatmentU.K.
(1)A company may elect 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 [F2no other company is a related 51% group company of the company] in the accounting period, the relevant maximum is £3,000,000.
(6)If [F3one 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 [F4those 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 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.
F5(9)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Words 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)
F3Words 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)
F4Words 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)
F5S. 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)