Corporation Tax Act 2010

[F1 357MB Profit imputed to back-office activities U.K.

(1) To determine for the purposes of section 357MA(3) the back-office profits of the qualifying trade for the accounting period, take the following steps—

• Step 1 Multiply each back-office deduction by the relevant percentage.

• Step 2 Add together each amount calculated under step 1.

(2) In subsection (1)—

• “back-office deduction” means a deduction—

  (a)

  to which the company is entitled in calculating the profits of the trade for the period, and

  (b)

  which is in respect of back-office activities;

• “the relevant percentage” means 5%.

(3) The Treasury may by regulations amend subsection (2) so as to substitute a different percentage for the percentage for the time being specified there.

(4) Regulations under this section—

(a) may make different provision for different purposes (including, in particular, different trades or different back-office activities);

(b) may make incidental, supplemental, consequential and transitional provision and savings.]

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1