BTC - Marginal relief HELP
ally
Registered Posts: 12 New contributor 🐸
Hellooooo
Could somebody please explain to me when marginal relief applies in calculating corporation tax. I just can't get my head around it!!
Ally
Could somebody please explain to me when marginal relief applies in calculating corporation tax. I just can't get my head around it!!
Ally
0
Comments
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Hi Ally,
Sent you a PM.
Zoe0 -
Marginal relief is given when annual profits fall between the lower limits of £300,001 and the upper limits £1,500,000.
The limits above are shared equally between the number of any associated companies. For example if there is 1 associated company, then £300,001 becomes £150,001 and £1,500,000 becomes £750,000.
Kind regards
Steve0 -
Thanks Steve and Zoe for your help!!
Ally0 -
Do remember that there are two definitions for profits:
1.'Profits' = tax adjusted profit plus UK dividends (including tax credit received) and is used twice in the formula but is never actually taxed.
2.Profits = tax adjusted profits which is udes once in the formula and is the figure that is taxed!0
