[F1PART 8AU.K.Profits arising from the exploitation of patents etc
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)
[F2CHAPTER 2AU.K.Relevant IP profits: cases mentioned in section 357A(6)
Textual Amendments
F2Pt. 8A Chs. 2A, 2B inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3)
Small claims treatmentU.K.
357BNBSmall claims figure electionU.K.
(1)Subsection (2) applies where a company has made a small claims figure election for an accounting period under section 357BN(2)(b).
(2)In its application for the purposes of determining the relevant IP profits of the trade of the company for the accounting period, section 357BF(2) (steps for calculating relevant IP profits) has effect as if in Step 5—
(a)for “marketing assets return figure” there was substituted “ small claims figure ”, and
(b)for “(see section 357BK)” there was substituted “ (see section 357BNB(3)) ”.
(3)Subsections (4) to (9) apply for the purpose of calculating the small claims figure for a relevant IP income sub-stream established at Step 2 in section 357BF(2) in determining the relevant IP profits of a trade of a company for an accounting period.
(4)If 75% of the qualifying residual profit of the trade for the accounting period is lower than the small claims threshold, the small claims figure for the sub-stream is 25% of the amount of the sub-stream following Step 4 in section 357BF(2).
(5)If 75% of the qualifying residual profit of the trade for the accounting period is higher than the small claims threshold, the small claims figure for the sub-stream is the amount given by—
where—
A is the amount of the sub-stream following the deductions required by Step 4 in section 357BF(2),
QRP is the qualifying residual profit of the trade of the company for the accounting period, and
SCT is the small claims threshold.
(6)If no company is a related 51% group company of the company in the accounting period, the small claims threshold is £1,000,000.
(7)If one or more companies are related 51% group companies of the company in the accounting period, the small claims threshold is—
where N is the number of those related 51% group companies in relation to which an election under section 357A(1) has effect for the accounting period.
(8)For an accounting period of less than 12 months, the small claims threshold is proportionately reduced.
(9)Subsection (6) of section 357BN (meaning of “qualifying residual profit”) applies for the purposes of subsection (4) and (5) of this section.]]