franked investment income

Definition:

abbreviation: FII. income of a company resident in the United Kingdom which consists of a distribution in respect of which the company is entitled to a tax credit (and which accordingly represents income equal to the aggregate of the amount or value of the distribution and the amount of that credit). If a company that has received, franked investment income then distributes the money as a dividend, the company does not itself pay advance corporation tax on it (as the tax has already been paid).



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