How should I treat exempt distributions received from another company on a CT600 (previously called Franked Investment Income)?

Franked Investment Income (FII) is the former name for UK dividends that a limited company receives from another company. Depending on whether this income is detailed within the profit of your financial statements, there are two possible ways to list this information on the CT600 tax return. Please follow the below steps:

Please Note: FII usually is not included 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. Therefore the most common scenario would be the first scenario where the dividend is included in the company accounts and two entries therefore would be required. 

SimpleStep

CT600 Core > Trade and Professional income > Tax adjusted profit/(loss)worksheet – other adjustments

HMRC Forms

CT600 Core > Computations > Tax adjusted profit/(loss)worksheet – other adjustments.



Article ID: 834
Last updated: 06 Sep, 2023
Revision: 10
Tax Return Production -> How should I treat exempt distributions received from another company on a CT600 (previously called Franked Investment Income)?
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