franked investment income

[smarty1]

I am trying to fill in my CT600 tax return form - and am sooo confused!

Can someone please explain to me what franked investment income is

Thanksng you in advance

Smarty1

[Truemanbrown]

After-tax investment income that is distributed by one U.K. company to another. This income is often distributed in the form of dividends. The idea behind franked income is to prevent double taxation.

For example, If Company A receives a franked dividend from Company B, Company A does not have to pay corporate tax on the dividend because Company B has done so already.

In other words, once the issuing company has paid corporate tax on the income being distributed, the tax payment is attributed also to the companies who receive the franked dividend.