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Does anyone understand it?
I know what is DTR & I read the answers but I don’t really get it.
Kuwata has 14% tax rate, so on £130k profits, will pay £18,200 in Kuwata taxes
So all we are doing, is working backwards.
What amount of Kuwata profits will generate a UK tax liability of £18,200?
With 20% tax rate, the answer is £91,000 (£18,200 / 0.2).So you need to get Kuwata profits down to £91k, which means you will need to group relief £39k (130k – 91k).
Does this help?
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