Comments

  1. avatar says

    I have a question concerning example 7.
    Wouldn’t it be better if we kept 50,000 gains for small company, and transferred the remaining 50,000 gains to lage company.
    That way small company would have ttp=150,000 which is equal to to the lower band limit.
    And large company would have ttp=975,000.
    It is better than as it is in the answer that small should have ttp 125,000 and large 1,000,000.

  2. avatar says

    I’m not sure i understand this. If you use the full $200.00 from V doesn’t that mean that the remaining $100 TTP in V will be taxed at 23.75 % instead of 23%. while if you had use $100 against V the remain $300 will be taxed at 23% and the remaining loss of $100.00 against Villa will be taxed at 23%.

    • avatar says

      I believe you are correct because without the relief, every £ in V would be taxed @ 23%. This lecture is saving from £200k a tax @ a rate of 23% from a large company rate and make the balance of 200 fall into marginal rate. This means the last saving of £23,750 in your answer is better used in saving 23,000 in the Villa’s TTP of £1m by deducting relief of the last £100k from it.

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