(ii) Assuming the new structure is implemented with effect from 1 August 2006, calculate the level of
management charge that should be made by Bold plc to Linden Limited for the year ended 31 July
2007, so as to minimise the group’s overall corporation tax (CT) liability for that year. (2 marks)
(ii) For the year ended 31 July 2007, there will be two associated companies in the group. Bold plc will count as anassociated company as it is not dormant throughout the period in question. As a result, the corporation tax limits will bedivided by two (i
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