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Where Taxpayers and Advisers Meet

CT600 and company classification

MANHAR
Posts:68
Joined:Wed Aug 06, 2008 4:01 pm
CT600 and company classification

Postby MANHAR » Mon Jul 30, 2018 2:49 pm

Hi - could someone please help me to clarify the completion of a CT600 and the corporation tax liability.

I have a new limited company client with a portfolio of 3 commercial properties (Freehold). The company is owned by 3 members of the same family.Their only source of income in the year is rent received from these properties which are let at an arms length transaction on short leases. The company's business is buying properties which it renovates and lets or maybe sell.

My question is:
a) On the CT600 is this classified as "a trading company" or a "Close investment - holding company". Hence will it be allowed to be taxed at the small companies rate of corporation tax (of 19% in 2017/18).

Thank you in advance.

Manhar

bibescu
Posts:25
Joined:Tue Sep 21, 2010 9:33 am

Re: CT600 and company classification

Postby bibescu » Mon Jul 30, 2018 10:32 pm

According to the legislation, Corporation Tax main rate at 19% applies to all profits except ring fence profits, for the years starting the 1 April 2017, 2018 and 2019.


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