Paragraph 7 Calculation of average net trading profits

subject to paragraph 8 to 10 below, the average net trading profits of an entitled applicant’s qualifying business shall be the amount produced by the formula T ÷ 5, where—

• T equals the total of the net trading profits of that qualifying business for each of the accounting periods comprising the reference period;

for each accounting period, the net trading profits of the qualifying business shall be the net trading profits of that business assessed in accordance with UK GAAP;

where, during an accounting period, a business carried on by an entitled applicant consisted partly of a qualifying business and partly of a non-qualifying business, the net trading profits of the qualifying business for that accounting period shall exclude any element of revenue or costs so far as it related to the non-qualifying business; and

where, in any accounting period, any revenue or costs related partly to a qualifying business and partly to a non-qualifying business, such revenue or costs shall be apportioned between the qualifying business and the non-qualifying business in accordance with—