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

From legislation.gov.uk

(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.

(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.

(3)Condition B is that—

(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

(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.

(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).

(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.

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

Formula

\frac{£ 3,000,000}{1 + N}

where N is the number of those related 51% group companies in relation to which an election under section 357A(1) has effect for the accounting period.

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

(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.

(9)Repealed