Chapter 11 - 5.4 - Marginal Relief Flashcards
1
Q
When does marginal relief apply?
A
When augmented profits fall between £50,000 and £250,000
2
Q
How does marginal relief work?
A
You calculate corporation tax at 25% and then deduct the marginal relief
3
Q
What is the equation for calculating marginal relief?
A
(250,000 - augmented profits) x (TTP/augmented profits) x 3/200
