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Forums › ACCA Forums › ACCA TX Taxation Forums › urgent help
in kaplan f6 revision kit question 62(music plc) solution lower limit and upper limit of £300,000 and £1,500,000 are prorated by 7 associated co’s
in solution gong ltd is also treated as associate while it has an effective holding of 48%(0.8*0.75*0.8)
why it is so?
Hi Tarigilyas
I would be happy to help you. Howver I dont use a kaplan revision kit.
if you could paste your question, probably i can help you out with it.
Assuming you have issue with associated companies. While calculation the limit for corporation tax, we do consider a company to be a associated company if they have a direct holding of 50% they are associated.
It means you dont have have calculate the effective holding interest. If its more than 50% its associate.
Hope it helps
Regards
Raj
We do not look at indirect holdings being more than 50 percent. If the company above going Ltd has more than 50 percent then it is linked to the rest of the associated companies
Hope this helps