Section 18B | Marginal relief for companies without ring fence profits ^F1

From legislation.gov.uk

10 June 2021

(1)This section applies if—^F1

(a)a company is UK resident in an accounting period,^F1

(b)it is not a close investment-holding company in the period,^F1

(c)its augmented profits of the accounting period exceed the lower limit but do not exceed the upper limit, and^F1

(d)its augmented profits of the accounting period do not include any ring fence profits.^F1

(2)The corporation tax charged on the company's taxable total profits of the accounting period is reduced by an amount equal to—^F1

Formula

F \times (U - A) \times \frac{N}{A}

where—

F is the standard marginal relief fraction,

U is the upper limit,

A is the amount of the augmented profits, and

N is the amount of the taxable total profits.

(3)In this Act “the standard marginal relief fraction” means the fraction set by Parliament for the financial year as the standard marginal relief fraction for the purposes of this Part.^F1