Dec 19, P hives a property down to S (100% subsid) at an accounting profit but no gain/no loss tax base. Original cost = £1.3m, sale price £2.3m. Both P & S have a YE of June 20 & prepare under FRS102 s1A.
On transfer, in P, the historic reval & DT is reversed out.
On transfer, S records the asset at the £2.3m it paid. In S, there is a YE reval to £2.5m & DT accounted for. Should I be accrueing DT for the tax on the £1m gain in P? After all, it will be S paying that tax when they sell the property. Assuming so, would you have the £190k DT a debit to the P&L or RR? Presumably P&L as the corresponding £1m revaluation isn't in S's RR?