Knowledgebase Support HMRC Useful links
Knowledgebase home
Tax Return Production
Accounts Production
Practice Management
VAT Filer
CloudConnect
Anti-Money Laundering
Support home
Video Training Guides
NEW

Hot Topics
SimpleStep Guides
Release Notes
Technical
Known Issues

HMRC Status
Useful Links
MTD for Agents MTD for Businesses What is MTD
Preparation
Agent Services Account
MTD for VAT
MTD for Income Tax
MTD for VAT
Digital Record Keeping
Quarterly Updates
Step-by-step Guide
HMRC's MTD Timeline
TaxCalc's MTD Journey

How should I treat Franked Investment Income on a CT600?

Article ID: 834
Last updated: 19 Mar, 2020

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

To record FII on a CT600:

SimpleSteps: CT600 Core > Trade and Professional income > Tax adjusted profit/(loss) worksheet – disallowable expenditure

HMRC Forms Mode: CT600 Core > Computations> Tax adjusted profit/loss-disallowable expenditure

  1. Enter the accounting profit into the box labelled Profit/(loss) on ordinary activities before taxation.
  2. Open Tax adjusted profit/(loss)worksheet – other adjustments.
  3. 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).
  4. 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: 19 Mar, 2020
Revision: 6
Views: 22493
This article was:  


Also listed in
folder Tax Return Production -> CT600 Corporation Tax Return