F1PART 8AProfits arising from the exploitation of patents etc
CHAPTER 3Relevant IP profits : cases mentioned in section 357A(7): no income from new IP
Routine return figure
357CIRoutine return figure
(1)
To determine the routine return figure in relation to a trade of a company for an accounting period—
Step 1 Take the aggregate of any routine deductions made by the company in calculating the profits of the trade for the accounting period. For the meaning of “routine deductions”, see F2sections 357BJA and 357BJB .
Step 2 Multiply that amount by 0.1.
Step 3 Calculate X% of the amount given by Step 2.“X%” is the percentage given by Step 2 in section 357C(1).
(2)
In a case where—
(a)
the company (“C”) is a member of a group,
(b)
another member of the group incurs expenses on behalf of C,
(c)
had they been incurred by C, C would have made a deduction in respect of the expenses in calculating the profits of the trade for the accounting period, and
(d)
the deduction would have been a routine deduction,
C is to be treated for the purposes of subsection (1) as having made such a routine deduction.
(3)
Where expenses are incurred by any member of the group on behalf of C and any other member of the group, subsection (2) applies in relation to so much of the amount of the expenses as on a just and reasonable apportionment may properly be regarded as incurred on behalf of C.