Hi, I'm doing the accounts etc, more of a favour for a friend, oh dear I hear people say. It's a Ltd company set-up for the sole purpose is to collect their annual maintenance payments, pay the bills and save some money for a rainy day when the road needs repairing etc. A handful of houses were built and the road and lighting have not been adopted. Each owner is a shareholder of the Company.
Year on year it will make surpluses [profits], literally hundreds of pounds until such time a major expense comes in. I'm lead to understand that these shd not be subjected to CT. Is this correct and if so how do I complete, if at all, the CT600?
Regards
Mark
Replies (2)
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Beware - Trusts
You should get HMRC approval first but generally these type of companies fall outside of the CT net.
That said, any interest it receives may be taxable under Trust rules, rather than CT, and so a Trust Tax Return might be required.
Swedish Chef is spot on
A bit more background to the "trusts" issue from the horse's mouth- link & following pages: