GLOSSARY

Tax credit (in relation to dividends) definition

What does Tax credit (in relation to dividends) mean?

A UK individual is charged to income tax on the amount of the dividend received by them from a UK company, plus a notional tax credit equal to one ninth of the dividend received. For example, a UK individual who receives a dividend of 90 must report a dividend of 100 (being 90 plus the tax credit of 1/9 of 90, ie 10) in his tax return. This means that a basic rate tax payer will pay no further tax on the dividend.

Discover our 1 Practice Notes on Tax credit (in relation to dividends)

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

  Case studies

"It really is saving us a huge number of hours over the days, weeks and months. Having more relevant support at hand, not having to draft or review documents them from scratch - it all adds up."

Southampton FC


Access all documents on Tax credit (in relation to dividends)

GET ACCESS NOW