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HMRC internal manual

Company Taxation Manual

Corporation Tax: small profits relief: company with associated companies

Where in any accounting period a company has one or more associated companies, the upper and lower limits are divided by the total number of companies associated, namely one plus the number of companies associated with the subject company. Thus if the company has three associated companies and its accounting period is for the twelve months to 31 March 2011, the lower and upper limits are £75,000 (£300,000 / 4) and £375,000 (£1,500,000 / 4) respectively. Where the accounting period is less than twelve months, these figures are proportionately reduced.