Section 279B | Company with only ring fence profits ^F1

From legislation.gov.uk

(1)This section applies if—^F1

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

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

(b)its augmented profits of the accounting period—^F1

(i)exceed the lower limit, but^F1

(ii)do not exceed the upper limit, and^F1

(c)its augmented profits of that period consist exclusively of 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—^F1F3

Formula

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

where—

R is the ring fence 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 Chapter “the ring fence marginal relief fraction” means 11/400ths.^F1F4