C4C3C2C1F1PART 3ACompanies with small profits

Annotations:
Amendments (Textual)
F1

Pt. 3A inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 3

Modifications etc. (not altering text)
C2

Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by 2001 c. 2, s. 99(4A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 16(3))

C1

Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by S.I. 1998/3175, reg. 2(2A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 13(2)(c))

The standard small profits rate for non-ring fence profits

18AProfits charged at the standard small profits rate

1

Corporation tax is charged at the standard small profits rate on a company's taxable total profits of an accounting period which are not ring fence profits if—

a

the company is UK resident in the accounting period,

b

it is not a close investment-holding company in the period, and

c

its augmented profits of the accounting period do not exceed the lower limit.

2

In this Act “the standard small profits rate” means a rate that—

a

is lower than the main rate, and

b

is set by Parliament for the financial year as the standard small profits rate.

3

In this Part “ring fence profits” has the same meaning as in Part 8 (see section 276).

4

In the case of a company with ring fence profits, see section 279A(3) (small ring fence profits rate chargeable on ring fence profits).