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)
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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.
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?