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Dormant holding company - need to file CT600?

Does a dormant holding company need to file a CT600?

Didn't find your answer?

This is one of those questions (so common in tax) where I think I know the answer but I've done a bit of digging around without entirely removing a small piece of doubt as to whether I'm right.

The situation is a holding company that has subscribed for shares in its subsidiaries but has never received any income of any sort.  Am I right in thinking there is no need to file a return because it has never come within the charge to tax?

Very grateful if anyone can confirm.

Replies (7)

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RLI
By lionofludesch
10th Sep 2019 14:59

You're right - but it's worth writing to HMRC to confirm that there's nothing to report. Just so they're expecting nothing.

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RLI
By lionofludesch
10th Sep 2019 14:59

You're right - but it's worth writing to HMRC to confirm that there's nothing to report. Just so they're expecting nothing.

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By JCresswellTax
10th Sep 2019 15:07

You are correct and also agree with Lion.

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By WaldoLydecker
10th Sep 2019 16:57

Thank you both for your advice. I'm pretty sure no notice to deliver a return has been received from HMRC, so presumably they're expecting nothing (we are filing CT600s for active subsidiaries).

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Replying to WaldoLydecker:
RLI
By lionofludesch
10th Sep 2019 17:26

I wouldn't rely on that assumption.

But the worst that can happen is you'll have to write to them later.

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By Matrix
10th Sep 2019 20:21

While a dormant company does not need to file a tax return, if it has received a notice to file then HMRC should be notified to avoid a penalty.

Whether the holding company is dormant is a matter for you to agree with HMRC, since it can receive income from its shareholding then it may well be within the charge to corporation tax.

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By atleastisoundknowledgable...
10th Sep 2019 21:41

We’ve had 2 holdcos for which we didn’t submit CT600s, who then received non-filing penalties from HMRC. We just write to HMRC and got the penalty removed.

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