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Number of associated companies used in each financial year

Article ID
ias-9506
Article Name
Number of associated companies used in each financial year
Created Date
11th February 2011
Product
IRIS Business Tax
Problem
The number of associated companies for the different financial years has been entered, for example FY2008 = 2 associated companies and FY2009 = 1 associated company. When the corporation tax computation is reviewed, 2 associated companies appear for both financial years. Why? This also affects the number of associated companies used on the CT600 - boxes 39 and 41.
Resolution
The number of associated companies used in the corporation tax computation and the CT600 will only be different in the two financial years if ALL of the following apply: 1. The AP straddles two financial years; 2. The upper or lower limit for any relevant marginal relief has varied; and 3. The number of associated companies was different in the parts of the AP falling in the two financial years. Otherwise the highest number of associated companies will be used in both financial years. Refer also to note 39 and 40/41 on pages 12/13 in the HMRC CT600 Guide.

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