Part 2 Amendment of Small Chargeable Profits Exemption
Finance Act 2011 (2011 c 11) | Legislation

Part 2 Amendment of Small Chargeable Profits Exemption

4

(1)     Section 748 of ICTA (cases where apportionment of chargeable profits and creditable tax under section 747(3) does not apply) is amended as follows.

(2)     In subsection (1), after paragraph (d) insert—

“(da)     the relevant profits for the accounting period, after any adjustment required by subsection (3C), do not exceed—

(i)     £200,000, or

(ii)     if the accounting period is less than 12 months, a proportionately reduced amount; orâ€.

(3)     After subsection (3) insert—

“(3A)     The reference in subsection (1)(da) to the relevant profits for an accounting period are to the sum of—

(a)     the profits of the company for that period calculated in accordance with generally accepted accounting practice (disregarding any exempt distributions and any capital gains or losses), before any adjustment required or authorised by law in calculating chargeable profits,

(b)     any amount which accrues during that period to the trustees of a settlement in relation to which the company is a settlor or a beneficiary, and

(c)     the company's share of any income which accrues during that period to a partnership of which the company is a partner.

(3B)     For the purposes of subsection (3A)—

(a)     “exempt

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