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Dividends from 51% or more

This topic has 3 replies, 2 voices, and was last updated 10 months ago by Tax Tutor.

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March 4, 2022 at 7:59 am #649793
Sourav9271
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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
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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
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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
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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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