Dividend income on CT600

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Hello!

I am struggling with CT600 entries. The holding company received dividend income from its subsidiary. The holding company does not have any other income, and the only expenses recorded are exchange gains/losses and bank charges. Is it correct to do this in the following way:

  1. Tick the box indicating the company does not have recognized turnover.
  2. Enter the net profit figure on the CT600 from the profit and loss statement.
  3. Deduct the dividend income as income from which income tax has been deducted.
  4. Enter the dividend income in the exempt ABGH distribution box (box 620).

This leaves me with a trading loss (exchange gain + bank charges). Do you think this is the correct way to proceed?

Thank you for any help.

Replies (3)

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By Bobbo
14th Jun 2024 15:52

QLis wrote:

Deduct the dividend income as income from which income tax has been deducted.

Why would you do this? The dividend received from the subsidiary is not income from which income tax has been deducted.

I use tax software which would automatically deduct such a dividend so no manual entry from me would be needed.

QLis wrote:

This leaves me with a trading loss (exchange gain + bank charges).

The holding company doesn't have a trade so how could it have a trading loss?

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Replying to Bobbo:
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By QLis
17th Jun 2024 10:25

I use Taxfiller and am looking for the correct box. Do you think I should skip the 'Trading Profits' tab altogether and put bank charges and exchange differences under the 'Management Expenses' tab?

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By Truthsayer
14th Jun 2024 16:08

'Do you think this is the correct way to proceed?'

No. Bobbo is correct. There is no taxable income and no trading loss.

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