Hello
I need to transfer the profits from one company to another company within the same group. How do I show this transfer in the corporation tax return?
Thanks
Replies (10)
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Well, in that case I would wait for his return.
If the position is just re an immediate very urgent cashflow issue the directors could possibly meantime agree to say lend funds from one company to another (they are both companies? LLPs and partnerships re loans can have real dangers) ,but that should be last resort as doing any transactions without considering the implications is really not advisable.
Possibly better is call him and interrupt his holiday
You do not say the group relationship, (Sub to parent, parent to Sub, one sub to another sub) you have given no details of the reason for doing anything and nobody on here has a clue re vat implications/other taxes within your group, so really giving meaningful advice is impossible and possibly disrespectful to the incumbent.
What is your position vis a vis the "Group"?
As an aside and considering your mention of CT600 (CT return),are you more talking about Group Relief re losses rather than a "transfer of profits"?
If the transaction hasn't yet happened, and the question is simply how it should (or should not) be reflected in the CT return, I can see no reason why it can't wait.
Well, what mechanism happened? Dividend, cross invoice between entities, what were the mechanics of the transaction?
The tax treatment will depend upon what actually occurred, the phrase "transferred profits" really does not in itself mean anything.
Edit- as a starting point the transaction surely is reflected within the accounts, the CT600 is then derived/prepared from the accounts.
I've being asked to plug in the figures into my tax software but just not sure of which boxes to use.
Monkey, Typewriter;
Typewriter, Monkey.
I do wish people would be more careful when asking questions. What you really meant to say was that you need to reflect the transfer of profits (whatever that means).
As DJKL says, you've been far too vague.