Commentary

D1.1205A Associated companies—calculation of tax payable

Corporate tax
Corporate tax | Commentary

D1.1205A Associated companies—calculation of tax payable

Corporate tax | Commentary

D1.1205A Associated companies—calculation of tax payable

The provisions in this article were repealed with effect from 1 April 2015. From this date for non-ring fence trades there is only one 'main rate' of corporation tax (see D1.1201). Where an accounting period straddles this date it is split into two notional periods. For the small profits rate that applies to ring fence trades (see D1.1204).

For a company with one or more associated companies the lower and upper limits (set out in D1.1205) are divided by one plus the number of associated companies1. As to the meaning of associated companies, see D1.1206.

If a group of companies has taxable total profits altogether of less than the upper limit, less corporation tax is paid if the profits are distributed fairly evenly about the group than if

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