Large one-off pension contributions by limited company

Posted by sparkey999 PM | on Sun, 08/07/2012 - 19:10 788 2 comments | report

I have a small limited company client who engaged in a particular transaction in the financial year just passed. The company sold its commercial property to a pension fund (director's SIPP) at market value. To fund the purchase of the property, the fund obtained a bank loan and also a one-off contribution to the fund from the limited company.

Will the contribution:

(a) be disclosed as an exceptional item in the P&L

(b) be deductible for corporation tax purposes

I am assuming the "wholly and exclusively" rule applies which may mean the contribution (c£70k) is disallowed?

Comments

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blok | Fri, 13/07/2012 - 08:34

nervous..............

sparkey999 | Sun, 15/07/2012 - 14:41