This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Dividends recieved from LTD company by a LTD company

da3533
Posts:4
Joined:Mon Oct 08, 2018 10:16 am
Dividends recieved from LTD company by a LTD company

Postby da3533 » Mon Oct 08, 2018 10:20 am

Hello

How do I record a dividend received from another company that I own 15% shares in?

Company A (mine) owns 15% of Company B.
When Company A invested into the Company B, I recorded this as a long-term investment and payment of £15 paid towards the share capital.

Just recently, Company B has just put in my dividends into Company A's bank account.

I have been reading many articles online where it says it is exempt from corporation tax.
Is this dividend taxable?
and do I explain the dividend received under the 'long-term investments'?

Thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Dividends recieved from LTD company by a LTD company

Postby pawncob » Fri Oct 12, 2018 11:15 am

https://www.taxadvisermagazine.com/article/small-or-large-company
With a pinch of salt take what I say, but don't exceed your RDA

da3533
Posts:4
Joined:Mon Oct 08, 2018 10:16 am

Re: Dividends recieved from LTD company by a LTD company

Postby da3533 » Wed Oct 17, 2018 11:38 am

Hi

thanks


Which account do i put this in, how do i explain the payment inbound ? would it be in share capital?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Dividends recieved from LTD company by a LTD company

Postby pawncob » Wed Oct 17, 2018 11:50 am

No. It's Income. Show it as a dividend.
With a pinch of salt take what I say, but don't exceed your RDA

da3533
Posts:4
Joined:Mon Oct 08, 2018 10:16 am

Re: Dividends recieved from LTD company by a LTD company

Postby da3533 » Wed Oct 17, 2018 12:07 pm

buts its exempt. if i show as an income on clearbooks, it will mark as taxable....

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Dividends recieved from LTD company by a LTD company

Postby pawncob » Thu Oct 18, 2018 11:51 am

Who does your tax computations and submits them to HMRC? Tell them to adjust it on the comp.
With a pinch of salt take what I say, but don't exceed your RDA

da3533
Posts:4
Joined:Mon Oct 08, 2018 10:16 am

Re: Dividends recieved from LTD company by a LTD company

Postby da3533 » Thu Oct 18, 2018 12:46 pm

HI

I use clearbooks... i have marked them as dividends.... but they are not showing as my net profit when i produce an up to date profit and loss account.... just as current asset


Return to “Company Taxation”