The standard calculation uses the steps detailed in s357C CTA 2010.
Steps 1 to 7 follow the format as prescribed in legislation.
- Step 3 and Step 4 include a number of populated fields which pulls data through from other areas in the Tax Return. Hyperlink descriptions allow easy navigation to the relevant area.
- The small companies treatment claim in Step 5 is made by default.
- Step 5 compares the qualifying residual profit against the small claims threshold and calculates which result from subsection (a) or (b) applies.
- The first row of Step 7 shows only one of the qualifying residual profit, Step 5 or Step 6 results, as laid out in the calculation.
IP profits summary
The summary shows the result of each of the calculation steps, as well as the Relevant IP profit or Relevant IP losses resulting from Step 7.
Any IP losses are recorded in the summary window within the Patent Box section only. Any brought forward losses available are automatically offset against the Relevant IP profit of the period.
You can adjust for losses transferred in and out (of the trade or the company) and the Loss b/fwd value can be overridden if required.