Section 371LB The basic ruleF1

(1)

The low profits exemption applies for a CFC's accounting period if subsection (2), (3), (4) or (5) applies.

(2)

This subsection applies if the CFC's accounting profits for the accounting period are no more than £50,000.

(3)

This subsection applies if the CFC's assumed taxable total profits for the accounting period are no more than £50,000.

(4)

This subsection applies if—

(a)

the CFC's accounting profits for the accounting period are no more than £500,000, and

(b)

the amount of those profits representing non-trading income is no more than £50,000.

(5)

This subsection applies if—

(a)

the CFC's assumed taxable total profits for the accounting period are no more than £500,000, and

(b)

the amount of those profits representing non-trading income is no more than £50,000.

(6)

If the accounting period is less than 12 months, the amounts specified in subsections (2), (3), (4)(a) and (b) and (5)(a) and (b) are to be reduced proportionately.

Annotations

Textual amendments

F1: Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)