Step 3 - trading profits, non-trading income profits and chargeable gains Divide the company's total profits for the accounting period (as modified under step 1(2)) into—

a

profits of a trade of the company (the company's “trading profits”),

b

profits, other than chargeable gains, that are not profits of a trade of the company (the company's “non-trading income profits”), and

c

chargeable gains included in the total profits (the company's “chargeable gains”).

Step 4 - apportionment of the step 2 amount

1

Allocate the whole of the step 2 amount to one of, or between two or all of, the following—

a

the company's trading profits,

b

the company's non-trading income profits, and

c

the company's chargeable gains.

2

Reduce, but not below nil, each of the company's trading profits, non-trading income profits and chargeable gains by the amount (if any) allocated to it under paragraph (1).

Step 5 - amount of qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains The amounts resulting from step 3, after any reduction under step 4, are—

a

in the case of the amount in step 3(a), the company's qualifying trading profits,

b

in the case of the amount in step 3(b), the company's qualifying nontrading income profits, and

c

in the case of the amount in step 3(c), the company's qualifying chargeable gains.