Corporation Tax Act 2010 section 276

Ring fence profits

Section 276 defines what "ring fence profits" means for the purposes of the supplementary charge to corporation tax on oil and gas companies.

• Ring fence profits are calculated for each accounting period and relate specifically to corporation tax on UK oil and gas extraction activities.
• Where a company has an aggregate chargeable gain on oil-related assets for the period (as determined under section 197(3) of the Taxation of Chargeable Gains Act 1992), its ring fence profits comprise both that aggregate gain and any ring fence income for the period.
• Where there is no such aggregate gain, ring fence profits consist solely of the company's ring fence income for the period.
• This definition applies only for corporation tax purposes and does not extend to income tax.