Even colder

David Jeffrey’s article Cold comfort for corporates highlighted some helpful and interesting points and made some good suggestions for change but I was surprised to note that his article made several references to the small profits rate as being a relief and several references to claiming relief for small profits rate.

I would like to point out that as part of the tax law rewrite the new legislation regarding small profits rate and marginal relief at CTA 2010 s 18 to s 21 reflects the removal of the requirement for a company to make a claim for small profits rate or marginal relief.

For accounting periods ending after 1 April 2010 the small profits rate or marginal relief will automatically apply (without the need to claim) if the conditions are met.

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