Corporation Tax calcs for Associated Companies

ChrisRoberts Registered Posts: 2 New contributor 🐸
Hi All,

I have a query RE. CT calculations for Associated Companies.:confused1:

There are two companies, with one being a wholly owned (100%) subsidiary of the other.
I know the tax rates are divisible by the number of associated companies and so for both companies become:
Lower Limit = £150,000 @ 21%
Upper Limit = £750,000 @ 30%

Both companies will be taxed at the rate of 21%, but I am unsure as to the calculations of one company once the other has been taxed?

My understanding would be to tax the first company at 21%. Then the dividends from the 1st company would be adjusted for whilst calculating the 2nd companies PCTCT. This would then be taxed again at 21%??

Hope that makes sense?!

I look forward to hearing any thoughts....



  • ChrisRoberts
    ChrisRoberts Registered Posts: 2 New contributor 🐸
    Problem solved!

    A UK Company is not taxable on any dividends received from another UK company!
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