Where CTA 2010, s. 279 applies to treat a company as having a ring fence trade (see ¶798-550), a separate computation is required in relation to that notional trade to establish the profit or loss arising. The income and expenditure relating to the activities or rights constituting the ring fence trade need to be identified, yet, apart from certain specific rules (see below), the legislation does not provide any general rule governing the computation. Hence, normal accountancy principles apply and the computation is made on the assumption that the ring fence trade is an actual trade.

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