Corporation Tax Act 2010 section 357CN

Marketing assets return figure

Section 357CN sets out how to calculate the marketing assets return figure, which is deducted from qualifying residual profit when computing relevant IP profits under the Patent Box regime.

• The marketing assets return figure equals the notional marketing royalty (NMR) minus the actual marketing royalty (AMR) for the trade in the accounting period.
• If the actual marketing royalty exceeds the notional marketing royalty, the marketing assets return figure is treated as nil.
• If the difference between NMR and AMR is less than 10% of the qualifying residual profit for the trade in the accounting period, the marketing assets return figure is also treated as nil.
• This figure feeds into Step 6 of the relevant IP profits calculation, reducing qualifying residual profit to reflect the value attributable to marketing assets rather than patented innovation.