Marginal relief: Difference between revisions

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1. ''UK Corporation Tax''.
''Tax - UK Corporation Tax - UK Capital Gains Tax''.  


Tax relief for companies or other organisations whose taxable profits were in between the upper limit for the (reduced) small companies' rate and the lower limit for the (full) main rate of Corporation Tax.
Marginal relief is tax relief designed to bridge a boundary between (1) a full rate of tax - or charge to tax - and (2) lower rates, or tax free transactions.


Marginal relief smoothed the transition from the reduced rate of corporation tax to the full rate.
Applying marginal relief has the effect of a lower overall effective rate of tax, or a lower tax charge.




2. ''UK Capital Gains Tax (CGT)''. 
Examples of contexts where marginal tax relief have applied include UK Corporation Tax, and UK Capital Gains Tax.
 
Tax relief in relation to disposals of assets for proceeds which are marginally above the threshold for total exemption from CGT, reducing the amount of tax that would otherwise be payable.




Revision as of 17:14, 2 March 2022

Tax - UK Corporation Tax - UK Capital Gains Tax.

Marginal relief is tax relief designed to bridge a boundary between (1) a full rate of tax - or charge to tax - and (2) lower rates, or tax free transactions.

Applying marginal relief has the effect of a lower overall effective rate of tax, or a lower tax charge.


Examples of contexts where marginal tax relief have applied include UK Corporation Tax, and UK Capital Gains Tax.


See also

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