The monetary limit in the case of a chargeable period of 12 months is £100,000.

If, in the case of an individual or partnership, the chargeable period is longer or shorter than 12 months, the monetary limit is the amount given by a proportional increase or reduction of £100,000.

If, in the case of a company, the chargeable period is shorter than 12 months, the monetary limit is the amount given by a proportional reduction of £100,000.

If, in a chargeable period, a company has one or more associated companies, the monetary limit for that period is—

$\frac{L}{N+1}$

where—

L is the monetary limit applicable under subsection (1) or (3), and

N is the number of the associated companies.

Section 13(4) and (5) of ICTA (companies which count as associated companies for the purposes of section 13(3)) applies for the purposes of subsection (4).