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

From legislation.gov.uk

(1)This section applies if—

(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

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

(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).

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

(4)The “appropriate proportion” is—

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—

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

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