SCHEDULES

SCHEDULE 9Profits from the exploitation of patents etc: consequential

4

1

Section 357C (relevant IP profits) is amended as follows.

2

Before subsection (1) insert—

A1

This section applies for the purposes of determining the relevant IP profits of a trade of a company for an accounting period in a case where—

a

the accounting period began before 1 July 2021,

b

the company is not a new entrant (see section 357A(11)), and

c

none of the amounts of relevant IP income brought into account as credits in calculating the profits of the trade for the accounting period is properly attributable to a new qualifying IP right (see section 357BP).

But see also section 357D (alternative method of calculating relevant IP profits in such a case).

3

In subsection (1)—

a

in the words before Step 1, omit “of a trade of a company for an accounting period”,

b

in Step 2, for “357CC and 357CD” substitute “ 357BH to 357BHC ”,

c

in Step 4, after “routine return figure” insert “ in relation to the trade for the accounting period ”,

d

in Step 5, for “elected” substitute “ made an election under section 357CL ”, and

e

in Step 6, after “marketing assets return figure” insert “ in relation to the trade for the accounting period ”.