Section 279B — Corporation Tax Act 2010: Company with only ring fence profits

Company with only ring fence profits 279B 1 This section applies if—

a a company is UK resident in an accounting period, ab it is not a close investment-holding company in the period, b its augmented profits of the accounting period—

i exceed the lower limit, but ii do not exceed the upper limit, and c its augmented profits of that period consist exclusively of 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— R × ( U − A ) × ( N A ) where— R is the ring fence 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 Chapter “ the ring fence marginal relief fraction ” means 11/400ths.