Section 357CM — Corporation Tax Act 2010: Small claims amount

Small claims amount 357CM 1 This section applies where a company makes an election under section 357CL for small claims treatment for an accounting period.

2 The small claims amount in relation to each trade of the company for the accounting period is—

a if the amount in subsection (3) is lower than the small claims threshold, 75% of the qualifying residual profit of the trade for the accounting period;

b in any other case, the amount given by— SCT T where— SCT is the small claims threshold, and T is the number of trades of the company.

3 The amount referred to in subsection (2)(a) is— 0.75 × Q R P where QRP is the aggregate of the amounts of qualifying residual profit of each trade of the company for the accounting period (but see subsection (4)).

4 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 subsection (3).

5 If no other company is a related 51% group company of the company in the accounting period, the small claims threshold is £1,000,000.

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

7 For an accounting period of less than 12 months, the small claims threshold is proportionately reduced. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .