Section 371LB | The basic rule

(1)The low profits exemption applies for a CFC's accounting period if subsection (2), (3), (4) or (5) applies.

(2)This subsection applies if the CFC's accounting profits for the accounting period are no more than £50,000.

(3)This subsection applies if the CFC's assumed taxable total profits for the accounting period are no more than £50,000.

(4)This subsection applies if—

(a)the CFC's accounting profits for the accounting period are no more than £500,000, and

(b)the amount of those profits representing non-trading income is no more than £50,000.

(5)This subsection applies if—

(a)the CFC's assumed taxable total profits for the accounting period are no more than £500,000, and

(b)the amount of those profits representing non-trading income is no more than £50,000.

(6)If the accounting period is less than 12 months, the amounts specified in subsections (2), (3), (4)(a) and (b) and (5)(a) and (b) are to be reduced proportionately.