Corporation Tax Act 2010 section 32

Meaning of "augmented profits"

Section 32 defines "augmented profits", the measure used to determine whether a company qualifies for the small profits rate of corporation tax.

• Augmented profits equal a company's taxable total profits plus any dividends and other distributions received from other companies, even though those dividends are not themselves charged to corporation tax.
• Dividends received from companies in the same group as the receiving company ("group income") are excluded from the calculation of augmented profits.
• Dividends received from trading companies or relevant holding companies owned by a consortium of which the receiving company is a member ("quasi-subsidiaries") are also excluded.
• The augmented profits figure is compared against the upper and lower profit limits (set out elsewhere in the Act) to decide whether the small profits rate or marginal relief applies.