PART 8B

Trading profits taxable at the Northern Ireland rate
CHAPTER 15

Profits arising from the exploitation of patents etc

“Relevant Northern Ireland IP profits”

Relevant Northern Ireland IP profits: SMEs that are not Northern Ireland employers and large companies
357VC
1
This section applies if—
a
the company is a Northern Ireland company in the relevant period by virtue of
the
SME
(election) condition or
the large company condition in section 357KA, and
b
the trade is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).
2
The company has “relevant Northern Ireland IP profits” for the period only if IP-related profits that (in accordance with Chapters 6 to 8) form part of its Northern Ireland profits or Northern Ireland losses for the period amount to Northern Ireland profits (rather than losses).
3
The company's “relevant Northern Ireland profits” for the period are the appropriate proportion of the relevant IP profits.
4
The “appropriate proportion” is—
NI/P
where—
NI
is so much of the IP-related profits as (in accordance with Chapters 6 to 8) forms part of its Northern Ireland profits;
P is the IP-related profits.
5
In this section the “
IP-related profits
” means the profits of the company's trade for the accounting period attributable to—
a
qualifying IP rights held by the company, or
b
exclusive licences held by the company in respect of qualifying IP rights.
Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1
Words in s. 357VC heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 13(2)
Words in s. 357VC(1)(a) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 13(3)