Section 357VC — Corporation Tax Act 2010: Relevant Northern Ireland IP profits: SMEs that are not Northern Ireland employers and large companies

Relevant Northern Ireland IP profits: SMEs that are not Northern Ireland employers and large companies 357VC 1 This section applies if—

a the company is a Northern Ireland company in the relevant period by virtue of the SME (election) condition or the large company condition in section 357KA, and b the trade is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).

2 The company has “relevant Northern Ireland IP profits” for the period only if IP-related profits that (in accordance with Chapters 6 to 8) form part of its Northern Ireland profits or Northern Ireland losses for the period amount to Northern Ireland profits (rather than losses).

3 The company's “relevant Northern Ireland profits” for the period are the appropriate proportion of the relevant IP profits.

4 The “appropriate proportion” is— NI P where— NI is so much of the IP-related profits as (in accordance with Chapters 6 to 8) forms part of its Northern Ireland profits; P is the IP-related profits.

5 In this section the “ IP-related profits ” means the profits of the company's trade for the accounting period attributable to—

a qualifying IP rights held by the company, or b exclusive licences held by the company in respect of qualifying IP rights.