Section 357B — Corporation Tax Act 2010: Meaning of “qualifying company”

Meaning of “qualifying company” 357B 1 A company is a qualifying company for an accounting period if—

a condition A or B is met, and b in the case of a company that is a member of a group, condition C is met.

2 Condition A is that, at any time during the accounting period, the company—

a holds any qualifying IP rights, or b holds an exclusive licence in respect of any qualifying IP rights. For the meaning of “exclusive licence”, see section 357BA.

3 Condition B is that—

a the company has held a qualifying IP right or an exclusive licence in respect of such a right, b the company has received income in respect of an event which occurred in relation to the right or licence, or any part of which so occurred, at a time when—

i the company was a qualifying company, and ii an election under section 357A(1) had effect in relation to it, and c the income falls to be taxed in the accounting period.

4 A right is a qualifying IP right for the purposes of this Part if—

a it is a right to which this Part applies (see sections 357BB and 357BBA ),

and b the company meets the development condition in relation to the right (see section 357BC).

5 Condition C is that the company meets the active ownership condition for the accounting period (see section 357BE).