A compay holds shares in PLC companies as an investment . The company sold some investment last year with no corporation tax to pay. They have just added back to the trading.
It does show as an investment in the balance sheet
The main activities of the compnay is in consultancy services
This year they have also sold these shares for £111,995.36 in profit . There has been 7,100,000.00 shares at the begining of the accounting year and sold 4,100,000 and they left with 3,100,000 shares that are still be left on the company's account. The company aslo bought more shares as an investment
I want to know if the company needs to pay corporation tax or this is just the release of the capital
The cmpany sold the shares in profit
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For companies, Corporation Tax is charged on chargeable gains arising on the disposal of assets. A chargeable gain may arise when a 'chargeable person' (CG10700c) disposes of a 'chargeable asset' (CG11700c) on a 'chargeable occasion' (CG12700c).
Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
Does it make any difference if the company is a holding company?
For instance the holding company buy and sell shares via stock exchange
I am trying to figure out a reason why they have never be computed the CT on these transactions
Thanks
One possible reason, and it's only a possibility, is the length of time that the shares have been held.
Another is that the accountant/tax adviser was inept.
Does it make any difference if the company is a holding company?
Lion will be getting his dictionary out for me again, but I feel I gotta ask... what do you mean? "For instance the holding company buy and sell shares via stock exchange" tells me nothing (except that you appear to be using the phrase "holding company" in a way that is new to me).
7,100,000 - 4,100,000 != 3,100,000
And yes, sounds like there's probably corporation tax to pay one way or another, whether it's an investment or trading activity, subject to the rules helpfully provided by WhichTyler.