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December 9, 2015 at 4:18 pm
You mentioned at 6m 38s that if an election was made to relieve some of the loss incurred by F ltd against property income assessable to F ltd then the whole £30,000 would need to be claimed, thus wasting the QCD; in example 6 the answer states that we should have relieved £20,000 of the £125,000 loss incurred by S ltd against property income assessed to S ltd. My question is, can a partial loss claim be made by the company that made the loss? I am now confused by the conflicting information 🙁
November 23, 2015 at 7:06 am
why upper limit and lower limit is divided by 5 when Villa Co has 3 subsidiary companies A,V,F so it should be divided by 3+1= 4 cause C is in a group with V but not with Villa.can anyone answer me pls ?
November 25, 2015 at 3:31 am
They are all associated companies with an effective interest of 51% or more.
February 28, 2016 at 4:12 pm
The calculation for associated companies and the idea of group relief (based on effective interests) are two different things. Firstly regardless of effective interest being less then 75% you would still consider all 5 companies as being associated with one another because they have more than 51% so you would still divide upper and lower limits by 5. When it comes to group relief, only those companies that have 75% or more effective interest can surrender losses to one another.
November 23, 2015 at 2:34 am
Excellent lectures as always… It may be just be a long night, but im struggling to understand why we use losses to reduce a company who sits on the Upper limit, down into the marginal band?
It states because we are making marginal savings, but why is it savings when we wouldn’t have to pay marginal rate in the first place (it if remains in the upper limit) ? Please help as i must be missing something…!
November 25, 2015 at 3:34 am
Moving a company from that is on a larger tax rate to a marginal tax rate would attract higher tax saving because they are being moved closer to the smaller rate. In short, mathematically it would be more beneficial to to tax only 30000 at 21.25% and the remaining 60000 at 20% than to only tax 590000 at 21%. You can check to confirm
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