Corporation Tax Act 2010 section 676DE

Meaning of "amount of profits which represents a relevant gain"

Section 676DE defines how to calculate the amount of a company's profits that represents a relevant gain, by comparing the gain itself against the total chargeable gains figure for the accounting period.

• Compare the relevant gain (Y) with the total chargeable gains or non-trading chargeable realisation gains included for the accounting period (Z).
• If the relevant gain (Y) is equal to or less than the total chargeable gains figure (Z), the profit representing the relevant gain is simply the amount of the gain itself (Y).
• If the relevant gain (Y) exceeds the total chargeable gains figure (Z), the profit representing the relevant gain is capped at the lower figure (Z).
• In effect, the profit attributable to a relevant gain can never be more than the overall chargeable gains amount reported for the period.