OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
ACCA F6 UK lectures Download F6 notes
May 15, 2015 at 12:45 am
Hi, the answer to example one seems impossibly correct.
Since it is a lower limit company .. its profits are only £140,000 therefore the rate should be multiplied by 20% not 21%?
Furthermore, why is there the need to carry out a marginal relief as it does not fall in between the marginal rate?
Please do correct me if i am wrong
May 15, 2015 at 2:12 pm
As i understand it, since there are 3 associated companies, then the lower and upper limits are divided by 3, hence the lower limit is now £100,000. From that, the company is now a Marginal company as it’s profits fall between £100,000 and £500,000 of the lower and upper limit respectively.
You must be logged in to post a comment.
OpenTuition.com is dedicated to providing all accountancy students throughout the world with the resources they need to study for the major … Learn more