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Company C has an accounting period of 1 July 2030 to 30 June 2031, profits of £85,000 and two associated companies for the period to 31 March 2031 and one associated company for the three months to 30 June 2031.  »Ê¹ÚÌåÓýapp CT main rate and small profits are unchanged at 25% and 19% respectively but the upper limit has been raised to £300,000. 

Marginal relief fraction

»Ê¹ÚÌåÓýapp differential between the lower and upper limits has changed so the marginal relief fraction for Financial Year 2031 therefore becomes:

£50,000 x 19%  = £9,500

£300,000 x 25% = £75,000

£250,000 x fraction = £65,500

£65,500/£250,000 = 26.2% marginal rate fraction

Difference between the main rate and the marginal rate expressed as a fraction is

26.2% - 25% = 1.2% = 3/250

As there is a change in the limits, the profits of the period are apportioned on a time basis by reference to the financial years as follows:

FY 30 = £85,000 x (274/365) = £63,808.22

FY 31 = £85,000 x (91/365) = £21,191.78

»Ê¹ÚÌåÓýappse apportioned profits are then compared with the relevant fractions of the lower and upper limits as follows:

FY30 � 3 associated companies in total

Lower limit          £50,000/ 3 = £16,667 x (274/365) = £12,511.42

Upper limit          £250,000/ 3 = £83,333 x (274/365) = £62,557.08

FY31 � 2 associated companies in total

Lower limit          £50,000/2 = £25,000, apportioned £25,000 x (91/365) = £6,232.88

Upper limit         £300,000/2 = £150,000, apportioned £150,000 x (91/365) = £37,397.26

»Ê¹ÚÌåÓýapp profits for FY30 exceed the thresholds so they are chargeable at the main rate without marginal relief.

£63,808.22 x 25% = £15,952.06

»Ê¹ÚÌåÓýapp profits fall between the thresholds for FY 31 so marginal relief applies as follows:

£21,192 x 25% = £5,298

Total = £21,250.06

Less marginal relief

FY 31                      (£37,397 - £21,192) x 3/250 = 16,205 x 3/250 = (£194.46)

Total CT due = £21,055.56