Hope you are all well, any advice on the below would be very much appreciated.
UK based limited company has an office in the US, the US federal taxes for the year ended 31 Dec 2019 are £3,200. The UK Corporation tax for the profits from the US office would be £5,300. Do we have to restrict the Credit Relief we claim to £3,200?
Only thing I can find from HMRC states that we have to "cap the Credit Relief at the UK Corp tax due on the profits from the US office" which would imply we could claim Credit Relief of £5,300 however I wondered if this was purely for cases where the US federal taxes were more than the UK Corp tax based on the US profits.
Hope that all makes sense.
Thank you for any help you can give.