Capital Allowances Act 2001 section 6C

"NI rate activity"

Section 6C defines the term "NI rate activity" for the purposes of the Capital Allowances Act 2001, identifying which Northern Ireland trading activities qualify for the Northern Ireland corporation tax rate.

• An NI rate activity covers qualifying trades carried on by SME (Northern Ireland employer) companies and NIRE companies, provided the trade is not an excluded activity and, for NIRE companies, is carried on through a Northern Ireland regional establishment.
• Certain back-office activities of excluded financial trades (those excluded solely because they involve lending and investment, investment management, or re-insurance) can also qualify as NI rate activities, provided the company or firm has made a specific election under CTA 2010.
• The definition extends to partnerships: qualifying partnership trades carried on by Northern Ireland Chapter 6 firms and Northern Ireland Chapter 7 firms are included on equivalent terms to those applying to companies.
• Key terms such as "qualifying trade", "qualifying partnership trade", "excluded financial trade", "back-office activities", and "Northern Ireland regional establishment" all take their meanings from Part 8B of the Corporation Tax Act 2010.