biz tax june 05

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Hi there,
I doing task 2.4 b, of biz tax june 05 paper. When calculating the marginal relief they use

(11/400) * (750000-448837) = 8282

however I believe the 750000 should be 1,500,000.

ie (11/400)*(1500000-448837) = 29057

I cant understand why they would you 750k, is it possible that this was the old corp tax band??? or am i missing something?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:biz tax june 05

    Hi Teddy14,

    Though I have not done the particular question yet, but does the company has an associate since that could be one reason of reducing the margin relief band to half.

    Hope this helps.

    Regards

    Stella
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:biz tax june 05

    Or could it be that they have only started half way through the year, that would explain reducing the band also.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:biz tax june 05

    Hi Teddy.

    Point 5 of the notes tells you that they have an associated company - Nuthatch, therefore you divide the limits by two.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:biz tax june 05

    that makes sense now, thaks all for your help.

Categories

Privacy Policy