Section 357VC | Relevant Northern Ireland IP profits: SMEs that are not Northern Ireland employers and large companies ^F1

From legislation.gov.uk

(1)This section applies if—^F1

(a)the company is a Northern Ireland company in the relevant period by virtue of the SME (election) condition or the large company condition in section 357KA, and^F1F2

(b)the trade is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).^F1

(2)The company has “relevant Northern Ireland IP profits” for the period only if IP-related profits that (in accordance with Chapters 6 to 8) form part of its Northern Ireland profits or Northern Ireland losses for the period amount to Northern Ireland profits (rather than losses).^F1

(3)The company's “relevant Northern Ireland profits” for the period are the appropriate proportion of the relevant IP profits.^F1

(4)The “appropriate proportion” is—^F1

Formula

\frac{NI}{P}

where—

NI is so much of the IP-related profits as (in accordance with Chapters 6 to 8) forms part of its Northern Ireland profits;

P is the IP-related profits.

(5)In this section the “IP-related profits” means the profits of the company's trade for the accounting period attributable to—^F1

(a)qualifying IP rights held by the company, or^F1

(b)exclusive licences held by the company in respect of qualifying IP rights.^F1