Section 357OB — Corporation Tax Act 2010: Northern Ireland intangibles credits and debits: SMEs that are Northern Ireland employers

Northern Ireland intangibles credits and debits: SMEs that are Northern Ireland employers 357OB 1 This section applies to a company that—

a is a Northern Ireland company in an accounting period by virtue of the SME (Northern Ireland employer) condition in section 357KA, and b carries on a trade which is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).

2 If the company does not carry on an excluded activity—

a the Northern Ireland intangibles credits for the accounting period are—

i the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, except credits in respect of pre-commencement assets and realisation credits, and ii the Northern Ireland element of each realisation credit for the period, and b the Northern Ireland intangibles debits for the accounting period are—

i the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, except debits in respect of pre-commencement assets and realisation debits, and ii the Northern Ireland element of each realisation debit for the period.

3 If the company carries on an excluded activity, the Northern Ireland intangibles credits for the accounting period are—

a the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, to the extent that—

i they are neither credits in respect of pre-commencement assets nor realisation credits, and ii they are not attributable to assets held for the purposes of the excluded activity, and b the Northern Ireland element of each realisation credit for the period.

4 If the company carries on an excluded activity, the Northern Ireland intangibles debits for the accounting period are—

a the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, to the extent that—

i they are neither debits in respect of pre-commencement assets nor realisation debits, and ii they are not attributable to assets held for the purposes of the excluded activity, and b the Northern Ireland element of each realisation debit for the period.

5 For the meaning of “pre-commencement asset”, see section 357OH.

6 For the meaning of a “realisation credit” and “realisation debit” and of the “Northern Ireland element” of either, see sections 357OD and 357OE.