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Dividends from 51% or more

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Dividends from 51% or more

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • March 4, 2022 at 7:59 am #649793
    Sourav9271
    Participant
    • Topics: 164
    • Replies: 117
    • ☆☆☆

    Sir on pg:100 Section 2.1 of OT notes
    It’s mentioned that dividends received from other companies are not taxable.

    So does it imply that dividends received from a 51% control company is taxable?Is that dividend already included in Trading income,thereby requiring no adjustment..??

    March 4, 2022 at 11:17 am #649806
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    NO – ALL dividend income is EXEMPT from Corporation Tax
    The issue about dividends from related 51% group companies is to do with the calculation of “profits” to determine whether a company is large

    March 6, 2022 at 3:05 pm #649981
    Sourav9271
    Participant
    • Topics: 164
    • Replies: 117
    • ☆☆☆

    Okay sir,
    So what does augmented profit consist of..?
    Total profits + Dividends from 51% group company am i right?

    March 7, 2022 at 10:34 am #650047
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    No!
    If you look in the Study Notes for Chapter 16 or watch the lecture you will clearly see the definition of “profits” – it is also no longer called “augmented” profit – what study material are you using other than OT?

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