Holding company - accounts and tax return

Holding company - accounts and tax return

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Hi,

I've not prepared accounts or a Corporation Tax return for a holding company before so I have a quick question:

- Company A makes a profit each year and pays Corporation Tax of roughly £25k. All remaining profits are distributed as a dividend to the sole shareholder which is Company B (holding company).

- Company B then distributes this to its 3 shareholders as per there number of shares.

- Company B has no other income, no expenses and no assets or liabilities, it simply owns the shares in Company A.

Am I right in thinking I need to file an abbreviated set of accounts with Companies House for Company B?

Do we need to file a CT600 with HMRC for Company B?

Do I need to do anything different to the normal with Company A in their accounts or CT600?

Any help and advice would be much appreciated - thank you.

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By johngroganjga
06th Oct 2015 15:07

It sounds as though your group is small, as defined, but you should check that out properly.

If so the holding company is exempt from the requirement to prepare group accounts and eligible to file abbreviated accounts at Companies House.

Yes you will need to file a CT return for the holding company if HMRC ask for one, together with the full accounts of course.

The subsidiary's accounts and tax returns will be very little different from what you are used to, except that disclosure of intra group balances (although you seem sure there won't be any) and related party transactions may be affected. 

 

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