Section 357CM Small claims amountF1

This section applies where a company F2makes an election under section 357CL for small claims treatment for an accounting period.

The small claims amount in relation to each trade of the company for the accounting period is—

The amount referred to in subsection (2)(a) is—

where QRP is the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period (but see subsection (4)).

Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of subsection (3).

If F3no other company is a related 51% group company of the company in the accounting period, the small claims threshold is £1,000,000.

If F4one or more other companies are related 51% group companies of the company, in the accounting period, the small claims threshold is—

where N is the number of F5those related 51% group companies in relation to which an election under section 357A has effect for the accounting period.

For an accounting period of less than 12 months, the small claims threshold is proportionately reduced.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .