How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6826
Type Your Tax Question Here...
bigduckontax is online now

Assistant: How can I help? I have a quick question regarding

This answer was rated:

Hi there
Assistant: Hi. How can I help?
Customer: I have a quick question regarding corporation tax and dividend tax. I own a small ltd company for some side consultation. I would like to open another company with my wife and have it owned by my existing company. If the new company earns money could it then pay its parent company a dividend? And if so how would we treat the dividend tax and corporation tax
Assistant: Have you talked to a tax professional about this?
Customer: Not yet
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: We would like to invest this money in stocks and shares if possible

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You are aware that profits can be moved upwards, downwards and sideways within a company group to reduce the overall exposure to Corporation Tax (CT)?

Inter company dividends are outside the scope of CT.

Customer: replied 2 months ago.
Thanks for that.
The owner company is not registered as a group but will own the subsidiary 100% as we will trade via both companies, is this still ok, would this still class a group ok?
Customer: replied 2 months ago.
Sorry I mean the owner isn't registered as a holding company, will this still count as a group

Yes, it is perfectly normal and would be classed as a group.

The owner does not have to be registered.


Actually I didn't! Please off er the phone call again.

bigduckontax and 2 other Tax Specialists are ready to help you

From long experience I think you will find it easier to ring em. I am on 01750 725420.

I think we covered everything in the telephone call.

Thank you for your support.

Customer: replied 2 months ago.
that was very helpful. Thank you

Delighted to have been of assistance.