Section 357BJ | Routine return figure ^F1F2

(1)This section applies for the purpose of calculating the routine return figure for a relevant IP income sub-stream established at Step 2 in section 357BF(2) in determining the relevant IP profits of a trade of a company for an accounting period.^F1F2

(2)The routine return figure for the sub-stream is 10% of the aggregate of any routine deductions which—^F1F2

(a)have been made by the company in calculating the profits of the trade for the accounting period, and^F1F2

(b)have been allocated to the sub-stream at Step 3 in section 357BF(2).^F1F2

For the meaning of “routine deductions”, see sections 357BJA and 357BJB.

(3)In a case where—^F1F2

(a)the company (“C”) is a member of a group,^F1F2

(b)another member of the group has incurred expenses on behalf of C,^F1F2

(c)had they been incurred by C, C would have made a deduction in respect of the expenses in calculating the profits of the trade for the accounting period,^F1F2

(d)the deduction would have been a routine deduction, and^F1F2

(e)the deduction would have been allocated to the sub-stream at Step 3 in section 357BF(2),^F1F2

C is to be treated for the purposes of subsection (2) as having made such a routine deduction and as having allocated the deduction to the sub-stream.

(4)Where expenses have been incurred by any member of the group on behalf of C and any other member of the group, subsection (3) applies in relation to so much of the amount of the expenses as on a just and reasonable apportionment may properly be regarded as incurred on behalf of C.^F1F2