Corporation Tax Act 2010 section 279DA

The remaining amount

Section 279DA defines how to calculate "the remaining amount" used in section 279C, which relates to the marginal relief fraction applied to non-ring fence profits.

• The remaining amount is calculated using the formula: (UZ − AZ) × NZ ÷ AZ, where each variable isolates the non-ring fence element of a company's profits
• UZ is the upper profit limit scaled down to reflect the proportion that non-ring fence augmented profits bear to total augmented profits
• AZ is the total augmented profits for the accounting period excluding any ring fence profits, and NZ is the corresponding taxable total profits excluding ring fence profits
• A is the full amount of augmented profits for the accounting period, used as the denominator when apportioning the upper limit