[F1371LBThe basic ruleU.K.
(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.]
Textual Amendments
F1Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)