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Dear Tutor
Could you please clarify example 4 chapter 16.
In your online lecture you did time apportioned twice for the short period .
– So you timed apportioned to find out the revised upper and lower limit and
– you also timed apportioned when calculating the Marginal relief.the confusion arises when we checked the answer notes and is not timed apportioned when calculating the Marginal relief.
please advice.
Many Thanks
JM
You must FIRSTLY time apportion the profit limits for the length of the chargeable accounting period to determine whether the company is small, marginal or large.
As the company is marginal then marginal relief needs to be computed. but the standard calculation is for a 12 month period and gives 12 months worth of marginal relief so that it too must then be time apportioned based on the length of the chargeable accounting period
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