Groups of companies

A company has taxable total profits of £40,000 for the year to 31 March 2026 and receives dividends of £90,000. The company's corporation tax rate for the year will be:

• small profits rate of 19%

• Main rate of 25% less marginal relief

• Main rate of 25%

A trading loss being carried forward, which arose on/ after 1/4/17, must be set against the first available trading profits from the same trade

• True

• False

A company can choose whether to make a part a) loss claim or a part b) loss claim against total profits

• True

• False

A Ltd owns 80% of the share capital of B Ltd and 55% of the share capital of C Ltd. All three companies are UK trading companies. A Ltd also owns 100% of the share capital of D Ltd, a dormant UK company. How many associated companies does A Ltd have?

• two

• three

• four

A Ltd has four 51% subsidiaries who are all trading companies. The small profit rate upper and lower limits against which augmented profits for the year ended 31 March 2026 would be.

• Lower limit £50,000

  Upper limit £250,000

• Lower limit £10,000

  Upper limit £50,000

• Lower limit £12,500

  Upper limit £62,500

B Ltd has three 51% subsidiaries who are all trading companies. The limit against which augmented profits would be compared when determining whether payments by instalments were required for the year ended 31 March 2026 would be.

• £1,500,000

• £375,000

• £500,000

In relation to group payment arrangements, the purposes of the 'nominated company' is...

• to submit corporation tax returns for the group

• to negotiate with HMRC on behalf of the group

• to make corporation tax instalment payments on behalf of the group

Which of the following types of losses cannot be surrendered under the group relief for losses rules?

• Trading losses

• Property business losses

• Deficits on non-trading loan relationships

• Capital losses

A company can be a member of more than one group relief for losses group.

• True

• False

G Ltd is a 90% subsidiary of F plc. F plc incurred a trading loss of £100,000 in the year to 31 December 2025. In the same period G Ltd made a trading profit of £50,000, had chargeable gains of £3,000 and paid qualifying charitable donations of £5,000. What are G Ltd's available profits against which group relief can be claimed?

• £50,000

• £53,000

• £48,000

• £43,200