Corporation Tax Return - Property Management Company

Hey there

Has anyone any experience in completing a CT1 return for Property management companies? The deposit interest received is over the threshold so it does not have that exemption, so do you then need to complete the return as per normal, is the profit exempt from any liability?

Thanks for any assistance

Yes, it's mutual trading so just return the interest.

Mutual trading - The income is from the members and the members own the company, so they're effectively transacting with themselves. It wouldn't make sense to tax that.

Gordon Gekko said:

Yes, it's mutual trading so just return the interest.

Mutual trading - The income is from the members and the members own the company, so they're effectively transacting with themselves. It wouldn't make sense to tax that.

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Thanks a million for that. On the CT1 so, do you imput the financial information as per usual and then simply indicate that it is exempt from any liability as it is mutual trading?

It's a while since I saw one, but from memory you don't input the information and just return the deposit interest.

With rates so low (i.e. close to zero), is the cost of preparing and submitting a tax return greater than the deposit interest?

Yeah that's what I would have thought. However when I contacted Revenue they told me I needed to report all information and that any "profit" would be liable to a CT payment !!!!

What does the company do?

Precisely.