I'm familiar with the accounting for an associate investment and the deferred tax implications, just want to confirm my thinking on the corporation tax. My understanding is any profits / losses each year attributable to the investor would be reflected on the investment on the balance sheet, but these wouldn't be subject to corporation tax, and instead would be taxed as a capital gain upon realisation i.e. sale yes? Just looking for a fellow accountant to confirm my thinking, no need to go into detail on special reliefs unless one is feeling particularly charitable!
16th Jul 2014
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Investment in Associate - corpration tax
Investment in Associate - corpration tax