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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


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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.

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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.


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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.


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

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

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