Section 357CL | Companies eligible to elect for small claims treatment ^F1

(1)A company may make an election under this section for small claims treatment for an accounting period if condition A or B is met in relation to the accounting period.^F1F2

(2)Condition A is that the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed £1,000,000.^F1

(3)Condition B is that—^F1

(a)the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed the relevant maximum, and^F1

(b)the company did not take Step 6 in section 357C(1) or 357DA(1) for the purpose of calculating the relevant IP profits of any trade of the company for any previous accounting period beginning within the relevant 4-year period.^F1

(4)In subsection (3)(b) “the relevant 4-year period” means the period of 4 years ending immediately before the accounting period mentioned in subsection (3)(a).^F1

(5)If no other company is a related 51% group company of the company in the accounting period, the relevant maximum is £3,000,000.^F1F3

(6)If one or more other companies are related 51% group companies of the company, in the accounting period, the relevant maximum is—^F1F4F5F6

(7)For an accounting period of less than 12 months, the relevant maximum is proportionately reduced.^F1

(8)Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of this section.^F1

(9)Repealed^F7F1