Corporation Tax Act 2010 section 357BJ

Routine return figure

Section 357BJ defines how to calculate the routine return figure for a relevant IP income sub-stream, which represents a notional return on routine activities and is deducted when arriving at the relevant IP profits of a trade.

• The routine return figure for each IP income sub-stream is 10% of the total routine deductions allocated to that sub-stream for the accounting period.
• Routine deductions are those deductions made in calculating trade profits that have been allocated to the sub-stream (as defined in sections 357BJA and 357BJB).
• Where the company is part of a group and another group member has incurred expenses on the company's behalf, those expenses are treated as if the company itself had made the corresponding routine deductions.
• If group expenses are incurred on behalf of multiple group members, only the portion that can be fairly and reasonably attributed to the company in question is included in the calculation.