Corporate Investment (technical tax question)

katy123

Hi
When a company makes a corporate investment into funds, the dividends received are free from corporation tax. However, what happens when the fund is an Accumulation unit where no distributions are made? Thanks

zenatr

katy123 said:

Hi
When a company makes a corporate investment into funds, the dividends received are free from corporation tax. However, what happens when the fund is an Accumulation unit where no distributions are made? Thanks

Hi,
I don't have any specialised knowledge of corporate tax matters, but from a personal standpoint, dividends rolled up into an accumulation fund are known as a "notional distributions" and are taxable in exactly the same way as income funds.

katy123

thanks Zanatr, figured the answer being notional distributions...thanks