Section 357CL — Corporation Tax Act 2010: Companies eligible to elect for small claims treatment

Companies eligible to elect for small claims treatment 357CL 1 A company may make an election under this section for small claims treatment for an accounting period if condition A or B is met in relation to the accounting period.

2 Condition A is that the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed £1,000,000.

3 Condition B is that—

a the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period does not exceed the relevant maximum, and b the company did not take Step 6 in section 357C(1) or 357DA(1) for the purpose of calculating the relevant IP profits of any trade of the company for any previous accounting period beginning within the relevant 4-year period.

4 In subsection (3)(b) “ the relevant 4-year period ” means the period of 4 years ending immediately before the accounting period mentioned in subsection (3)(a).

5 If no other company is a related 51% group company of the company in the accounting period, the relevant maximum is £3,000,000.

6 If one or more other companies are related 51% group companies of the company, in the accounting period, the relevant maximum is— £ 3,000,000 1 + N where N is the number of those related 51% group companies in relation to which an election under section 357A(1) has effect for the accounting period.

7 For an accounting period of less than 12 months, the relevant maximum is proportionately reduced.

8 Any amount of qualifying residual profit of a trade of the company that is not greater than nil is to be disregarded for the purposes of this section. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .