Section 357OB | Northern Ireland intangibles credits and debits: SMEs that are Northern Ireland employers

(1)This section applies to a company that—

(a)is a Northern Ireland company in an accounting period by virtue of the SME (Northern Ireland employer) condition in section 357KA, and

(b)carries on a trade which is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).

(2)If the company does not carry on an excluded activity—

(a)the Northern Ireland intangibles credits for the accounting period are—

(i)the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, except credits in respect of pre-commencement assets and realisation credits, and

(ii)the Northern Ireland element of each realisation credit for the period, and

(b)the Northern Ireland intangibles debits for the accounting period are—

(i)the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, except debits in respect of pre-commencement assets and realisation debits, and

(ii)the Northern Ireland element of each realisation debit for the period.

(3)If the company carries on an excluded activity, the Northern Ireland intangibles credits for the accounting period are—

(a)the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, to the extent that—

(i)they are neither credits in respect of pre-commencement assets nor realisation credits, and

(ii)they are not attributable to assets held for the purposes of the excluded activity, and

(b)the Northern Ireland element of each realisation credit for the period.

(4)If the company carries on an excluded activity, the Northern Ireland intangibles debits for the accounting period are—

(a)the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, to the extent that—

(i)they are neither debits in respect of pre-commencement assets nor realisation debits, and

(ii)they are not attributable to assets held for the purposes of the excluded activity, and

(b)the Northern Ireland element of each realisation debit for the period.

(5)For the meaning of “pre-commencement asset”, see section 357OH.

(6)For the meaning of a “realisation credit” and “realisation debit” and of the “Northern Ireland element” of either, see sections 357OD and 357OE.