Share this content
0
4
12665

Company dividends received

I have a small company that has received dividends in the year. Does anybody know how / where these are disclosed in the statutory accounts?

Many thanks
Alison

Replies

Please login or register to join the discussion.

By Clare
10th May 2010 17:04

Dividends in company accounts

Gross up the payment received, add the gross into Other Income and the tax credit under Tax Paid (in the same disclosure note as the CT due for the year).  It then gets deducted from the CT comp to ensure no CT is paid thereon, and added to the CT600 as franked investment income.

Thanks (0)
avatar
By Anonymous
10th May 2010 17:41

Wrong answer

Dividends are not grossed-up for company reporting purposes. The P&L account should simply show, as investment income, the actual dividends received. The tax credit goes nowhere near the accounts or the tax return.

PC

Thanks (0)
avatar
By Anonymous
10th May 2010 17:46

I tell a lie

The grossed-up amount does appear in the CT600, but only for the purposes of calculating small company relief. It doesn't feature in the computation of taxable profits, though.

PC

Thanks (0)
avatar
By Anonymous
10th May 2010 17:50

Unless, of course, they're from a 75% sub!

When you can safely ignore them entirely in the CT comp/return.  :)

Thanks (0)