Related 51% group companies ― from 1 April 2015

By Tolley
OMB_tax_img

The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Related 51% group companies ― from 1 April 2015
  • When do the rules apply?
  • Definition of related 51% group company

From 1 April 2015, the main rate of corporation tax and the small profits rate were unified to a single main rate of corporation tax and there is now no ‘small profits rate’. This means that there is no longer any requirement to calculate marginal relief for companies moving between the main rate and the small profits rate. As a result, the associated companies’ provisions which previously applied to determine whether a company paid the main rate, small profits rate and the level of marginal relief, were repealed by FA 2014, Sch 1, paras 1, 4.

CTA 2010, ss 25–30

However, rules similar to those for associated companies (the ‘related 51% group company rules’) were introduced and apply after 1 April 2015 for the purposes of the patent box small company treatment, capital allowances on long-life assets and the profit threshold for quarterly instalment payments.

FA 2014, Sch 1, para 21(2)
When do the rules apply?

The 51% group company rules apply for the following:

  • quarte

More on Corporation tax computations: