Dividends to overseas holding company

Any restrictions or matters to consider

Didn't find your answer?

An EU country based business owns the share capital of  a UK based holding company which in turn owns two trading subsidiaries in the UK

Is there any problem with the UK based company paying dividends up to its holding company ?

 

Thanks

Replies (2)

Please login or register to join the discussion.

By johngroganjga
23rd Sep 2020 14:25

I would have thought that before paying itself any such dividends the overseas holding company would want to know its tax position in its own country in relation to the receipt of such dividends.

Thanks (0)
avatar
By paul.benny
23rd Sep 2020 16:27

A few considerations:
- Has the UK topco got retained earnings of its own to pay a dividend? You may need to dividend up from the subsids first?
- Are there any minority holders?
- Is the cash available?
- Is now a good time to convert GBP into EUR?

Thanks (0)