Associated Companies

If a company has one subsidiary, that it owns 75% of share capital, then they are both associated companies, and therefore am I right in saying that the limits for tax are now halved for BOTH companies when they pay their corporation tax?

So the parent's tax limits are now 0-£5000 - Starting Rate, £5,000-25,000 small companies rate 19% marginal relief, £5000-150,000 small companies rate - 19%, 150,000-750000 full rate

30% marginal relief, and 750,000+ full rate 30%

And the same applies to the subsidiary?? they also get their tax limits halved for paying their tax?

Reply to
richeyjh
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