A wholly owned subsidiary is paying a dividend to its holding company.
My understanding that this is not subject to Corporation Tax by the holding company. How should the dividend received be shown in the holding company’s accounts? Should it be shown in the P&L as ‘other income / dividend income’ or elsewhere?
Will it then be deducted from profits in the corporation tax computation?
Just want to ensure we get it right, as not our normal bread and butter work.