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How should I treat Franked Investment Income on a CT600?

Article ID: 834
Last updated: 27 Feb, 2017

Franked Investment Income (FII) is the name for UK dividends that a limited company receives from another company.

To record FII on a CT600:

  1. Open Tax adjusted profit/(loss) worksheet – disallowable expenditure.
  2. Enter the accounting profit into the box labelled Profit/(loss) on ordinary activities before taxation.
  3. Open Tax adjusted profit/(loss)worksheet – other adjustments.
  4. Enter the FII into the box labelled Net dividends received from other companies (make sure to only complete the Gross FII received box, if you are not looking to include this as an add back).
  5. Enter the taxable value in box 38 (2008 form) or box 620 (2015 form). This is normally the same as the amount added back but in some cases can be different.

NOTE: TaxCalc won't include FII when calculating corporation tax because this would tax the dividend twice. This is because the company issuing the FII has already paid corporation tax on it.

Article ID: 834
Last updated: 27 Feb, 2017
Revision: 5
Views: 20391
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Also listed in
folder Tax Return Production -> CT600 Corporation Tax Return