• Step 3 - trading profits, non-trading income profits and chargeable gains

  Divide the company’s total profits for the accounting period (as modified under step 1(2)) into—

  1. a

     profits of a trade of the company (the company’s “trading profits”),

  2. b

     profits, other than chargeable gains, that are not profits of a trade of the company (the company’s “non-trading income profits”), and

  3. c

     chargeable gains included in the total profits (the company’s “chargeable gains”).

• Step 4 - apportionment of the step 2 amount

  1. 1

     Allocate the whole of the step 2 amount to one of, or between two or all of, the following—

     1. a

        the company’s trading profits,

     2. b

        the company’s non-trading income profits, and

     3. c

        the company’s chargeable gains.

  2. 2

     Reduce, but not below nil, each of the company’s trading profits, non-trading income profits and chargeable gains by the amount (if any) allocated to it under paragraph (1).

• Step 5 - amount of qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains

  The amounts resulting from step 3, after any reduction under step 4, are—

  1. a

     in the case of the amount in step 3(a), the company’s qualifying trading profits,

  2. b

     in the case of the amount in step 3(b), the company’s qualifying nontrading income profits, and

  3. c

     in the case of the amount in step 3(c), the company’s qualifying chargeable gains.