Part 8Oil activities
F1CHAPTER 3ARates at which corporation tax is charged on ring fence profits
The rates
279ACorporation tax rates on ring fence profits
(1)
Corporation tax is charged on ring fence profits at the main ring fence profits rate.
(2)
But subsection (3) provides for tax to be charged at the small ring fence profits rate instead of the main ring fence profits rate in certain circumstances.
(3)
Corporation tax is charged at the small ring fence profits rate on a company's ring fence profits of an accounting period if—
(a)
the company is UK resident in the accounting period, and
(b)
its augmented profits of the accounting period do not exceed the lower limit.
(4)
In this Act—
“the main ring fence profits rate” means 30%, and
“the small ring fence profits rate” means 19%.