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Section 279A Corporation tax rates on ring fence profitsF1

(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,

(F2ab)

it is not a close investment-holding company in the 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%.

Annotations

Textual amendments

F1

Pt. 8 Ch. 3A inserted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 5(3)

F2

S. 279A(3)(ab) inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 5