Comments

  1. avatar says

    Hi, the answer to example one seems impossibly correct.

    Reason –
    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

    • Profile photo of Maria says

      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.

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