Corporation Tax Act 2010 section 357CP

Actual marketing royalty

Section 357CP explains how to calculate the actual marketing royalty for a company's trade in a given accounting period, based on amounts paid for marketing assets and the proportion of income that qualifies as relevant IP income.

• The actual marketing royalty is calculated as X% of the total sums paid by the company to acquire relevant marketing assets or the right to exploit them, where those sums have been deducted in computing the trade profits for the period.
• X% is the proportion of the trade's total gross income that constitutes relevant IP income, as determined under Step 2 of section 357C(1).
• Relevant marketing assets carry the same meaning as defined in section 357CO, which covers assets such as trademarks, brands, and similar marketing-related intangible assets.
• Only amounts actually brought into account as debits in the trade profit calculation for the accounting period in question are included in the computation.