F1PART 9AControlled foreign companies
Chapter 12The low profits exemption
371LBThe basic rule
1
The low profits exemption applies for a CFC's accounting period if subsection (2), (3), (4) or (5) applies.
2
This subsection applies if the CFC's accounting profits for the accounting period are no more than £50,000.
3
This subsection applies if the CFC's assumed taxable total profits for the accounting period are no more than £50,000.
4
This subsection applies if—
a
the CFC's accounting profits for the accounting period are no more than £500,000, and
b
the amount of those profits representing non-trading income is no more than £50,000.
5
This subsection applies if—
a
the CFC's assumed taxable total profits for the accounting period are no more than £500,000, and
b
the amount of those profits representing non-trading income is no more than £50,000.
6
If the accounting period is less than 12 months, the amounts specified in subsections (2), (3), (4)(a) and (b) and (5)(a) and (b) are to be reduced proportionately.
Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)