Section 357BE — Corporation Tax Act 2010: The active ownership condition

The active ownership condition 357BE 1 A company meets the active ownership condition for an accounting period if all or almost all of the qualifying IP rights held by the company in that accounting period are rights in respect of which condition A or B is met.

2 Condition A is that during the accounting period the company performs a significant amount of management activity in relation to the rights.

3 In subsection (2) “ management activity ”, in relation to any qualifying IP rights, means formulating plans and making decisions in relation to the development or exploitation of the rights.

4 Condition B is that the company meets the development condition in relation to the rights by virtue of section 357BC(2) or (3).

5 Any reference in this section to a qualifying IP right held by the company includes a reference to a qualifying IP right in respect of which the company holds an exclusive licence.