For the latest New Development, see ND.2443.
A supplementary tax charge applies to 'adjusted' ring fence profits in addition to corporation tax. For accounting periods commencing on or after 1 January 2016 the supplementary charge is 10%1. (The rate was 20% from 1 January 2015 to 31 December 2015 and 32% from 24 March 2011 to 31 December 2014). Where any accounting period straddles 1 January 2016, the profits are to be apportioned on a time basis or, where this would work unjustly or unreasonably, on another basis that is just and reasonable as elected for by the company2.
Adjusted ring fence profits
A company's 'adjusted ring fence profits' are all its profits that arise to it from carrying on a ring fence trade (ie all its ring fence profits chargeable to corporation tax by reference to its chargeable gains and other income, in addition to the trading profits arising to the company as a result of its ring fence trade) except that the following adjustments need to
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