SCHEDULES

SCHEDULE 9Profits from the exploitation of patents etc: consequential

12

1

Section 357D (alternative method of calculating relevant IP profits: “streaming”) is amended as follows.

2

In subsection (1) at the end insert

in a case where—

a

the accounting period began before 1 July 2021,

b

the company is not a new entrant (see section 357A(11)), and

c

none of the amounts of relevant IP income brought into account as credits in calculating the profits of the trade for the accounting period is properly attributable to a new qualifying IP right (see section 357BP).

3

For subsection (4) substitute—

4

A company must apply section 357DA (instead of section 357C) for the purposes of determining the relevant IP profits of a trade of the company for an accounting period in a case mentioned in subsection (1) if any of the mandatory streaming conditions in section 357DC is met in relation to the trade for the period.