I'm probably overthinking this, but a subsidiary hives up a property to its 100% holding company at market value via a dividend in specie.
The property was already revalued in the subsidiary to market value so there's a revaluation reserve and deferred tax liability.
The disposal from the sub is treated as a disposal at MV with the dividend to account for it, so the deferred tax and revaluation reserve will unwind. The P&L "gain" will be added back in the CT600 computation. However for the purposes of the CT600, is the no gain/loss transfer to group companies automatic, or do I need to declare the gain in the computation but claim relief specifically? In IRIS I can't see a relief box for it.
Then in the holding company, there is dividend income and a property of the same value, accounted for at market value but for tax purposes held at a lower base cost. Presumably then it would be correct to bring in a deferred tax liability and a corresponding tax charge in the year to reflect that this is due?
Sorry - not an everyday occurrance in this practitioner's life so just checking I've not missed something. Thanks for reading.