Section 18B — Corporation Tax Act 2010: Marginal relief for companies without ring fence profits

Marginal relief for companies without ring fence profits 18B 1 This section applies if—

a a company is UK resident in an accounting period, b it is not a close investment-holding company in the period, c its augmented profits of the accounting period exceed the lower limit but do not exceed the upper limit, and d its augmented profits of the accounting period do not include any ring fence profits.

2 The corporation tax charged on the company's taxable total profits of the accounting period is reduced by an amount equal to— F × ( U − A ) × N A where— F is the standard marginal relief fraction, U is the upper limit, A is the amount of the augmented profits, and N is the amount of the taxable total profits.

3 In this Act “ the standard marginal relief fraction ” means the fraction set by Parliament for the financial year as the standard marginal relief fraction for the purposes of this Part.