Corporation Tax Act 2010 section 357JA

Profits chargeable to corporation tax and rates

Section 357JA establishes how trading profits are split into Northern Ireland profits and mainstream profits for corporation tax purposes, and confirms that Northern Ireland profits are taxed at the special Northern Ireland rate rather than the main rate.

• A company's trading profits in an accounting period must be separated into Northern Ireland profits and mainstream profits, where applicable.
• Northern Ireland profits are charged to corporation tax at the Northern Ireland rate, not the main rate.
• Mainstream profits (i.e. those that are not Northern Ireland profits) continue to be charged at the main rate of corporation tax.
• The normal rule that corporation tax is charged at the main rate is overridden to the extent that profits qualify as Northern Ireland profits.