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Dividend Exemption

How to get it on CT600

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Help!  This is the first time I have had to fill in a CT600 for a company whose only income is from dividends from a subsidiary.  It therefore has a dividend exemption but I can't for the life of me see how to claim it. I have been going round in circles to see what figures to put where on the CT600.  Only income is from dividends so is this the figure on box 145 turnover from trade?  Or is that zero?  Only expenses are accounting fees so do I have zero in trading profits and put fees in a losses box?  If so, what one because I have tried all ways and my software is not accepting a loss in box 275.  What box to I claim the dividend exemption in?  I know there is no tax to pay but I can't seem to put the figures in the right place for the software to agree with me.

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By Matrix
17th Jul 2020 14:46

The profit is the trading profit so enter that as usual and you make the adjustment in the tax computation by deducting the dividends received.

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By richard thomas
19th Jul 2020 20:59

I fail to see what the problem is. Suppose you only personal income was interest and dividends from ISAs - what would enter on your tax return? Answer - nothing. So what's different here? The CT 600 asks for details of non-exempt dividends only, so if you're sure they are exempt, the answer everywhere is "0".

I cannot see what trading has to with it, pace Matrix. Unless the company is a bank or insurance company, dividends from a sub cannot be trading income, and even then only in unusual circumstances.

"Turnover" means trading turnover - see return guide note on box 145.

Expenses can be treated as management expenses of an investment business (Box 245) and give rise to an excess to carry forward, but that excess is unlikely to be of use in the absence of taxable income.

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By Matrix
19th Jul 2020 21:21

To get the figures for the CT600 you have to do the tax computation first. For the tax computation you need to start with the profit before tax. If this includes dividends then you take them out. That was the question I was answering.

Of course if it is an investment company then there may be different boxes completed.

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Replying to Matrix:
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By richard thomas
20th Jul 2020 17:23

The question that was asked was where to put exempt dividends on the CT600.

Based on the facts given by the OP (only income is dividends from a sub) I fail to see why the question of "trading" was raised by you at all. Creating the tax computation (which the OP did not mention, presumably because it's extremely simple) would simply end up with a small amount of management expenses to carry forward - it wouldn't tell you in which box to enter the dividends or that there is no such box.

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