How are individuals taxed on distributions received from companies?

Copyright © 2025 LexisNexis

Published by a LexisNexis Tax expert

Practice notes

How are individuals taxed on distributions received from companies?

Copyright © 2025 LexisNexis

Published by a LexisNexis Tax expert

Practice notes

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This Practice Note explains the rules that apply to distributions made to UK resident individuals, other than individuals:

•
who claimed the remittance basis of taxation for periods prior to 6 April 2025 and/or who are taxed pursuant to the foreign income and gains regime, or the temporary repatriation facility, introduced from 6 April 2025 (for more, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26, Foreign income and gains regime from 6 April 2025 and Temporary repatriation facility—FAQs)
•
who receive distributions in their capacity as trustees (for more, see Practice Note: Taxation of trusts—investment income—Dividends and company distributions)
•
who receive distributions in their capacity as dealers in shares or securities
•
who receive open ended investment company dividends and authorised unit trust dividends (for which see Practice Note: Taxation of authorised investment funds—individual investors)
•
who receive real estate investment trust dividends (for which, see Practice Note: REITs—tax treatment of the REIT and its shareholders), and
•
who receive shares awarded to an individual under an approved share

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Jurisdiction(s):

United Kingdom

Key definition:

Distribution definition

What does Distribution mean?

In the Corporation Tax Acts (ctas) "distribution" means anything falling within of CTA 2010, s 1000.

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