franked investment income
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Related to franked investment income: Franked Dividend
In the United Kingdom, a dividend issued with a tax credit attached to it. Franked income exists in order to avoid double taxation of dividends. The amount of the tax credit depends upon the issuer's tax rate and the amount of the dividend. See also: Franked Dividend.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
franked investment incomeinterest or dividends received from FINANCIAL SECURITIES net after CORPORATION TAX has been deducted. To avoid taxing such investment income twice, any such income received by a company which has bought financial securities is granted a TAX CREDIT for the tax already paid so that it is not subject to further corporation tax.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson