F1PART 8BTrading profits taxable at the Northern Ireland rate
CHAPTER 7Northern Ireland profits and losses etc: SMEs that are not Northern Ireland employers and large companies
Rules about deductions and receipts
357NFAllowable deductions
(1)
A deduction is allowed in calculating the profits attributable to the company's NIRE for any allowable expenses incurred for the purposes of the NIRE.
(2)
Expenses incurred for the purposes of the NIRE include executive and general administrative expenses so incurred, whether in Northern Ireland or elsewhere.
(3)
It does not matter whether the expenses are incurred by, or reimbursed by, the NIRE.
(4)
The amount of expenses to be taken into account under subsection (1) is the actual cost to the company.
(5)
“Allowable expenses”, means expenses of a kind in respect of which a deduction is allowed for corporation tax purposes or (in the case of a company that is not UK-resident) would be so allowed if incurred by a UK resident company.
357NGDeductions attributable to the NIRE for costs
A deduction is allowed in calculating the profits attributable to the company's NIRE for any costs that would have been incurred on the assumptions in section 357NC(2).
357NHPayments and receipts in respect of intangible assets
(1)
No deduction is allowed in calculating the profits attributable to the company's NIRE for royalties paid, or other similar payments made, by the NIRE to any other part of the company in respect of the use of intangible assets held by the company.
(2)
But a deduction is allowed in calculating the profits attributable to the NIRE for any contribution by the NIRE to the costs of creation of an intangible asset.
(3)
No receipt is to be brought into account in calculating the profits attributable to the NIRE for royalties or other similar amounts received from any other part of the company in respect of the use of intangible assets held by the company for the purposes of the NIRE.
(4)
But a receipt is to be brought into account in calculating profits attributable to the NIRE for any contribution received by the NIRE in respect of the costs of creation of an intangible asset.
(5)
In this section “intangible asset”—
(a)
includes any intellectual property (as defined in section 712(3) of CTA 2009), and
(b)
subject to that, has the meaning it has for accounting purposes.
357NIInterest or other financing costs and receipts
(1)
No deduction is allowed in calculating the profits attributable to the company's NIRE for payments of interest or other financing costs by the NIRE to any other part of the company.
(2)
No receipt is to be brought into account in calculating profits attributable to the NIRE for interest or other financing income received from any other part of the company.