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Corporate Investment (technical tax question)

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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

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  • zenatrzenatr Forumite
    1 posts
    First Post
    MoneySaving Newbie
    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.

  • katy123katy123 Forumite
    310 posts
    Part of the Furniture 100 Posts Combo Breaker
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    thanks Zanatr, figured the answer being notional distributions...thanks

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