BTC - Marginal relief HELP

[ally]

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

[Elena]

Hi Ally,

Sent you a PM.

Zoe

[peugeot]

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
Steve

[ally]

Thanks Steve and Zoe for your help!!

Ally

[bryan100]

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!