OT21204 - Corporation Tax Ring Fence and Supplementary Charge

Supplementary Charge: Meaning of “Adjusted Ring Fence Profits”: ICTA88/s501A(2)-(3)

The supplementary charge is levied on a company’s adjusted ring fence profits. These are defined in ICTA88/s501A(2) and (3) as a company's ordinary ring fence CT profits subject to the assumption that financing costs (see OT21206) are left out of account

• in computing the company's own profits, or,
• for the purpose of computing adjusted ring fence profits only, in computing the amount of any loss relief surrendered to the company by way of group relief.