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What a relief
Key points
- From 1 April 2023 marginal relief was re-introduced after being abolished in 2015.
- How is marginal relief calculated?
- The rate of tax paid by companies is not related to the size of the company but to the size of its profits.
- From 1 April 2023 companies with augmented profits of £250 000 will pay tax on their taxable total profits at 25%; companies with augmented profits of £50 000 or less will pay tax at 19%. Companies with augmented profits between the two thresholds above will initially calculate their tax at the main rate of 25% but then will be allowed to deduct marginal relief to reduce their tax bill.
This article is intended for ATT students who are sitting their paper 2 and paper 4 examinations in 2024 and it is based on legislation enacted up to and including 31 July 2023.
When I was studying...
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