CTM03695 - Corporation Tax: small companies: claim received: number of associated companies

If a claim is received but the number of associated companies is not shown, use your discretion to decide which cases to enquire about.

• For cases with profits up to £75,000 - follow the guidance in the second subparagraph of CTM03670.
• For other cases - you should consider whether, given the level of profits of the company and bearing in mind the number of associated companies which would accordingly be needed to exceed the first relevant amount or the lower relevant maximum amount for the financial year(s) concerned, it is likely to be worth pursuing whether or not profits are chargeable at the small companies' rate.

Because SP1/91 specifically excludes unincorporated associations, other members' clubs or societies from the requirement to show the number of associated companies when claiming small companies’ relief any enquiries about associated companies in such cases should be carefully worded.