Section 279A — Finance Act 2014: Corporation tax rates on ring fence profits

Corporation tax rates on ring fence profits 279A 1 Corporation tax is charged on ring fence profits at the main ring fence profits rate.

2 But subsection (3) provides for tax to be charged at the small ring fence profits rate instead of the main ring fence profits rate in certain circumstances.

3 Corporation tax is charged at the small ring fence profits rate on a company's ring fence profits of an accounting period if—

a the company is UK resident in the accounting period, and b its augmented profits of the accounting period do not exceed the lower limit.

4 In this Act— “ the main ring fence profits rate ” means 30%, and “ the small ring fence profits rate ” means 19%.