F1PART 3ACompanies with small profits

The standard small profits rate for non-ring fence profits

18AProfits charged at the standard small profits rate

(1)

Corporation tax is charged at the standard small profits rate on a company's taxable total profits of an accounting period which are not ring fence profits if—

(a)

the company is UK resident in the accounting period,

(b)

it is not a close investment-holding company in the period, and

(c)

its augmented profits of the accounting period do not exceed the lower limit.

(2)

In this Act “the standard small profits rate” means a rate that—

(a)

is lower than the main rate, and

(b)

is set by Parliament for the financial year as the standard small profits rate.

(3)

In this Part “ring fence profits” has the same meaning as in Part 8 (see section 276).

(4)

In the case of a company with ring fence profits, see section 279A(3) (small ring fence profits rate chargeable on ring fence profits).