Section 357MB Profit imputed to back-office activitiesF1

To determine for the purposes of section 357MA(3) the back-office profits of the qualifying trade for the accounting period, take the following steps—

• Step 1 Multiply each back-office deduction by the relevant percentage.

• Step 2 Add together each amount calculated under step 1.

In subsection (1)—

• “back-office deduction” means a deduction—

  1. (a)

     to which the company is entitled in calculating the profits of the trade for the period, and

  2. (b)

     which is in respect of back-office activities;

• “the relevant percentage” means 5%.

The Treasury may by regulations amend subsection (2) so as to substitute a different percentage for the percentage for the time being specified there.

Regulations under this section—