Section 279A | Corporation tax rates on ring fence profits ^F1

(1)Corporation tax is charged on ring fence profits at the main ring fence profits rate.^F1

(2)But subsection (3) provides for tax to be charged at the small ring fence profits rate instead of the main ring fence profits rate in certain circumstances.^F1

(3)Corporation tax is charged at the small ring fence profits rate on a company's ring fence profits of an accounting period if—^F1

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

(ab)it is not a close investment-holding company in the period, and^F1F2

(b)its augmented profits of the accounting period do not exceed the lower limit.^F1

(4)In this Act—^F1

“the main ring fence profits rate” means 30%, and

“the small ring fence profits rate” means 19%.