• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Marginal Relief and augmented profits

Forums › ACCA Forums › ACCA TX Taxation Forums › Marginal Relief and augmented profits

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by dannyw1984.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • December 2, 2013 at 5:41 pm #149256
    dannyw1984
    Member
    • Topics: 14
    • Replies: 78
    • ☆☆

    Can someone just quickly try to explain something to me.

    From the technical articles for F6, it says:
    “Marginal relief eases the transition from the small profits rate to the main rate of
    corporation tax where augmented profits fall between £300,000 and £1,500,000.”

    So, from that, it reads like, any company with augmented profits that fall between £300,000 and £1,500,000 is able to claim marginal relief (using the 1/100 x (U-A) x N/A formula) – so far so good. Augmented profits that are either below £300,000 or over £150,000 don’t qualify for marginal relief.

    Why then, in question 2 from the June 2013 paper can the company in question claim marginal relief when its augmented profits are only £252,000 (total profits of £213,000 plus franked investment of £39,000).

    Total augmented profits is £252,000 which is below the £300,000 threshold – yet the answers say that marginal relief is to be claimed.

    It’s been a long day, so probably something very simple – someone please help?

    December 2, 2013 at 5:51 pm #149265
    Elizabeth
    Member
    • Topics: 0
    • Replies: 9
    • ☆

    Has 3 associate companies so the upper and lower limits are divided by 4

    December 2, 2013 at 6:00 pm #149271
    dannyw1984
    Member
    • Topics: 14
    • Replies: 78
    • ☆☆

    ah ok, so upper limit becomes £375,000 and the lower limit is now £75,000 – thus the augmented profit of £252,000 sits within this new range.

    Thanks.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • nosiphoceliwedlamini@gmail.com on Financial instruments – convertible debentures – ACCA Financial Reporting (FR)
  • NirajNathani99 on PPE – revaluation upwards – ACCA Financial Reporting (FR)
  • AKN1989 on Linear Programming – Maximum contribution – ACCA Performance Management (PM)
  • Motsotase910 on Contingent Assets and Liabilities – ACCA Audit and Assurance (AA)
  • Kim Smith on ACCA F2 Key to success

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in