Corporation Tax Act 2010 section 357VB

Relevant Northern Ireland IP profits: SMEs that are Northern Ireland employers

Section 357VB defines how to calculate "relevant Northern Ireland IP profits" for small and medium-sized enterprises (SMEs) that qualify as Northern Ireland companies through the Northern Ireland employer route.

• The section applies only where the company qualifies as a Northern Ireland company by meeting the SME Northern Ireland employer condition and the trade carried on is not an excluded trade.
• The company's relevant Northern Ireland IP profits are its relevant IP profits from the trade for the period, but adjusted to strip out certain intangible fixed asset amounts that are not properly attributable to Northern Ireland.
• Specifically, any amounts treated as trade receipts or expenses under the intangible fixed assets regime (CTA 2009) but which do not form part of the company's Northern Ireland profits or losses are excluded from the calculation.
• Any IP profits attributable to a qualifying IP right or exclusive licence held for the purposes of an excluded activity are also excluded from the relevant Northern Ireland IP profits.