SCHEDULES

SCHEDULE 3 U.K.Corporation tax: the non-corporate distribution rate: supplementary provisions

Part 1 U.K.General provisions

Calculation of company’s “underlying rate of corporation tax” U.K.

3 (1) A company’s underlying rate of corporation tax for an accounting period is determined as follows: U.K.

Step One

Take the company’s basic profits for the accounting period (“BP”).

Step Two

Find the amount of corporation tax chargeable on those profits apart from section 13AB (“CT”).

Step Three

The company’s underlying rate of corporation tax is the percentage determined as follows—

(2) In determining CT—

(a) apply the rate of corporation tax fixed for companies generally, and

(b) if the company is entitled to and claims relief under section 13 (small companies' relief) or section 13AA (corporation tax starting rate), apply the provisions of those sections.

But take no account of any other relief that is given by reducing the amount or rate of tax payable (as opposed to the amount of the profits chargeable to tax).