Section 357BJ — Corporation Tax Act 2010: Routine return figure

Routine return figure 357BJ 1 This section applies for the purpose of calculating the routine return figure for a relevant IP income sub-stream established at Step 2 in section 357BF(2) in determining the relevant IP profits of a trade of a company for an accounting period.

2 The routine return figure for the sub-stream is 10% of the aggregate of any routine deductions which—

a have been made by the company in calculating the profits of the trade for the accounting period, and b have been allocated to the sub-stream at Step 3 in section 357BF(2). For the meaning of “routine deductions”, see sections 357BJA and 357BJB.

3 In a case where—

a the company (“C”) is a member of a group, b another member of the group has incurred expenses on behalf of C, c had they been incurred by C, C would have made a deduction in respect of the expenses in calculating the profits of the trade for the accounting period, d the deduction would have been a routine deduction, and e the deduction would have been allocated to the sub-stream at Step 3 in section 357BF(2), C is to be treated for the purposes of subsection (2) as having made such a routine deduction and as having allocated the deduction to the sub-stream.

4 Where expenses have been incurred by any member of the group on behalf of C and any other member of the group, subsection (3) applies in relation to so much of the amount of the expenses as on a just and reasonable apportionment may properly be regarded as incurred on behalf of C.