Drogheda Accountants W.O McGrory & Co.

McGrory & Co set out the recent Revenue Extension of Relief from Corporation Tax for New Companies.

Relief from corporation tax is available in their first 3 years of operation for new companies:

• that are incorporated on or after 14 October 2008,
• which commence a qualifying trade in 2009, and
• whose corporation tax liabilities do not exceed specified levels.

The recent changes extend the relief to such companies commencing to trade in 2010.

A qualifying trade does not include

• a trade which was previously carried on by another person or formed part of another person’s trade,
• a trade of dealing in or developing land or exploration and extraction of natural resources, or
• a trade consisting of “service company” activities such as the carrying on of a profession

Where a company claiming relief takes over the activities of another trade, those activities will be treated as a separate trade (which will not be a qualifying trade, having been previously carried on by another person). Relief will continue to be available with regard to corporation tax attributable to the qualifying trade within 3 years of commencement, subject to certain limits.

Relief under this section will cease where part of the qualifying trade is transferred to a connected person.

 If you think you might be eligible for this relief, or are thinking of starting up in business and want some advice, contact us or call (041) 9836707 and come in for a free first consultation.

Tags: corporation tax, exemption from tax for new companies, mcgrory & co, qualifying trade, starting up in business

This entry was posted on Thursday, July 1st, 2010 at 12:37 pm and is filed under Taxation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.