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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: 4295
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: 4295
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: 4295
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


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