Corporation Tax Act 2010 section 357CM

Small claims amount

Section 357CM sets out how to calculate the small claims amount for each trade of a company that has elected for small claims treatment under the Patent Box regime.

• Where 75% of total qualifying residual profits across all trades is below the small claims threshold, the small claims amount for each trade is 75% of that trade's qualifying residual profit.
• Where 75% of total qualifying residual profits meets or exceeds the threshold, the small claims amount is the threshold divided equally among the company's trades.
• The basic small claims threshold is £1,000,000, but this is shared equally between the company and any related 51% group companies that have also elected into the Patent Box regime.
• For accounting periods shorter than 12 months, the small claims threshold is proportionately reduced.