Section 357MB — Corporation Tax Act 2010: Profit imputed to back-office activities

Profit imputed to back-office activities 357MB 1 To determine for the purposes of section 357MA(3) the back-office profits of the qualifying trade for the accounting period, take the following steps— Step 1 Multiply each back-office deduction by the relevant percentage. Step 2 Add together each amount calculated under step 1.

2 In subsection (1)— “ back-office deduction ” means a deduction—

to which the company is entitled in calculating the profits of the trade for the period, and which is in respect of back-office activities; “ the relevant percentage ” means 5%.

3 The Treasury may by regulations amend subsection (2) so as to substitute a different percentage for the percentage for the time being specified there.

4 Regulations under this section—

a may make different provision for different purposes (including, in particular, different trades or different back-office activities);

b may make incidental, supplemental, consequential and transitional provision and savings.