# Taxation (International and Other Provisions) Act 2010, Section 371LB: The basic rule


(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.

---
Source: https://www.legislation.gov.uk/ukpga/2010/8/section/371LB (the official version)
Page: https://openlegislation.uk/taxation-international-and-other-provisions-act-2010/section-371LB
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.