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Hello everyone
Im facing a problem and was wondering if anyone here can help me,
till half hour ago i thought franked investment income comprises of both dividends from uk and overseas companies(both resident and non uk residents)
but in a question i tried to attempt(BPP Practice and Revision Kit question 32 – Crash Bash Ltd) they have only included divided from uk company and ignored one from overseas 100% subsidiary ??
does the dividend from an overseas subsidiary(resident overseas) not form part of franked investment income ?see chapter 20 (opentuition notes) – section 2.2 (g) pp 111
have not looked at the question you refer to, but i suspect the uk company is NOT an “associated” company – therefore it will be included in FII calculation.
also see chapter 19 (opentuition notes) – section 2.3(b) pp 105 – “In calculating augmented profits dividends received from associated companies are excluded.”
And as you stated that the overseas company is a 100% subsidiary, then it is an associate and subsequently will not be included in FII calculation.
🙂thanks dude its make sense ..
so to sum up .. it doesn’t matter if the dividend is from UK company or subsidiary of UK resident company abroad or resident outside the UK company their dividend ll be included in FII as long as the parent company owns less than 50% ??associated company (>50%) – UK based or outside UK – do NOT include in FII
non-associated company (<50%) - UK based or outside UK - include in FII
🙂
Yes as others have said….dividends received from any company which is 51% or more, DO not include if FII.
Include ALL other dividends whether UK or non UK company.Good luck!
Yes as others have said….dividends received from any company which is 51% or more, DO not include if FII.
Include ALL other dividends whether UK or non UK company.Good luck!
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