Corporation Tax Act 2010 section 357BL

Introduction

Section 357BL introduces the group of rules (sections 357BLA to 357BLH) that explain how to work out the R&D fraction for each sub-stream of relevant IP income, as part of the Patent Box calculation of a company's relevant IP profits.

• Sections 357BLA to 357BLH set out the method for calculating the R&D fraction that is applied to each relevant IP income sub-stream.
• The R&D fraction is determined at Step 2 of the process described in section 357BF(2) for computing a company's relevant IP profits from a trade.
• Whenever sections 357BLA to 357BLH refer to "the sub-stream", "the trade", "the company" or "the accounting period", they mean the specific sub-stream, trade, company and accounting period being considered in the current calculation.
• This section acts purely as a signpost and definitional framework — the substantive calculation rules are contained in the subsequent sections it introduces.