Commentary

D7.5126 The minimum profits test—accounting periods before 1 January 2007

Corporate tax
Corporate tax | Commentary

D7.5126 The minimum profits test—accounting periods before 1 January 2007

Corporate tax | Commentary

D7.5126 The minimum profits test—accounting periods before 1 January 2007

The rules in this division apply for accounting periods beginning before 1 January 2007. From this date there was a mandatory I-E basis instead (see D7.506) and a separate mechanism that ensured the taxable profits of a company subject to the I-E basis of taxation did not fall below the company's actual trading profits (see D7.537).

In accounting periods beginning before 1 January 2007 the comparison was carried out by the so-called minimum profits test which compared the amount of the notional Case I profit with the profit in the

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