[F1357CLCompanies eligible to elect for small claims treatmentU.K.
(1)A company may elect for small claims treatment for an accounting period if condition A or B is met in relation to the accounting period.
(2)Condition A is that the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed £1,000,000.
(3)Condition B is that—
(a)the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed the relevant maximum, and
(b)the company did not take Step 6 in section 357C(1) or 357DA(1) for the purpose of calculating the relevant IP profits of any trade of the company for any previous accounting period beginning within the relevant 4-year period.
(4)In subsection (3)(b) “the relevant 4-year period” means the period of 4 years ending immediately before the accounting period mentioned in subsection (3)(a).
(5)If the company has no associated company in the accounting period, the relevant maximum is £3,000,000.
(6)If the company has one or more associated companies in the accounting period, the relevant maximum is—
where N is the number of those associated companies in relation to which an election under section 357A has effect for the accounting period.
(7)For an accounting period of less than 12 months, the relevant maximum is proportionately reduced.
(8)Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of this section.
(9)Sections 25 to 30 (definition of “associated companies”) have effect for the purposes of this section.]
Textual Amendments
F1Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)