Marginal relief
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Has anyone done the example "Basil Ltd" (not sure which book it's from). The P value (includes gross dividends) is £28,889 (I=£22,000). We did it in class & i've got it down as having marginal relief. There are no associates.<BR><BR>I thought if P was:<BR><BR>0 - £10,000 was 0% tax<BR><BR>£10,000 - £50,000 was 19% tax<BR><BR>£50,000 - £300,000 was 19% tax with marginal relief<BR><BR>£300,000 to £1,500,000 was 30% with marginal relief<BR>and<BR>above £1,500,000 was 30% tax with no relief.<BR><BR>so any ideas what I'm missing?<BR><BR>There are some dividends paid later in the question, so there's an underlying tax rate to calculate, but they were £8000 so even that would@t put it over £50,000.<BR><BR>This has got me well and truly flummoxed! Too many rules to remember in business tax!!!<BR><BR>Cheers - Glenn
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Marginal relief
10-50000 is 19% less marginal relief<BR>50000-300000 is 19% alone<BR><BR>Other than that you are right.0 -
Marginal relief
Thanks. Yeah, that makes sense now. The marginal relief is a step from 0% to 19%. <BR><BR>Many thanks<BR><BR>Glenn0