UK Reporting Capital Contribution - Companies Act UK

[cmdall]

Hello,
UK registered entity received capital contribution (from shareholder), since the Companies Act does not recognise this, how shall i report this amount in the financial accounts (web filling) please? Thank you

 

[alexm]

Hello,
Please refer to Capital Gains Manual. It may not answer you question regarding the web filling but will give an idea where to search. In general, you may need to assess whether it's a repayable loan in the balance sheet or a one-time gain in the P/L statement in a form of a parent's gift (donation).
I am not an expert on UK GAAP but we had a case where a capital contribution beyond the nominal share capital from German perspective ("share capital reserve") had to be considered as a gain from UK perspective. The subsidiary receiving such a gift from the parent can distribute it back to the parent as a dividend; however, the parent receiving such a dividend may need to check the book value of the subsidiary for impairment.