Section 18A — Corporation Tax Act 2010: Profits charged at the standard small profits rate

Profits charged at the standard small profits rate 18A 1 Corporation tax is charged at the standard small profits rate on a company's taxable total profits of an accounting period which are not ring fence profits if—

a the company is UK resident in the accounting period, b it is not a close investment-holding company in the period, and c its augmented profits of the accounting period do not exceed the lower limit.

2 In this Act “ the standard small profits rate ” means a rate that—

a is lower than the main rate, and b is set by Parliament for the financial year as the standard small profits rate.

3 In this Part “ ring fence profits ” has the same meaning as in Part 8 (see section 276).

4 In the case of a company with ring fence profits, see section 279A(3) (small ring fence profits rate chargeable on ring fence profits).