SolvedSection 357CM | Small claims amount
From legislation.gov.uk
(1)This section applies where a company makes an election under section 357CL for small claims treatment for an accounting period.
(2)The small claims amount in relation to each trade of the company for the accounting period is—
(a)if the amount in subsection (3) is lower than the small claims threshold, 75% of the qualifying residual profit of the trade for the accounting period;
(b)in any other case, the amount given by—
Formula
where—
SCT is the small claims threshold, and
T is the number of trades of the company.
(3)The amount referred to in subsection (2)(a) is—
Formula
where QRP is the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period (but see subsection (4)).
(4)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 subsection (3).
(5)If no other company is a related 51% group company of the company in the accounting period, the small claims threshold is £1,000,000.
(6)If one or more other companies are related 51% group companies of the company, in the accounting period, the small claims threshold is—
Formula
where N is the number of those related 51% group companies in relation to which an election under section 357A has effect for the accounting period.
(7)For an accounting period of less than 12 months, the small claims threshold is proportionately reduced.
(8)Repealed