The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
A dividend is a distribution of profit by a company to its shareholders.
A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash dividends and Non-cash dividends guidance notes.
For more on dividends from overseas resident companies, see the Foreign dividends guidance note.
The dividend tax regime fundamentally changed from 6 April 2016:
ITA 2007, ss 8, 13A
However, the position is slightly different for non-residents in receipt of UK cash dividends, see below.
Note that the Scottish income tax rates only apply to the non-savings non-dividend income (commonly referred to in practice as non-savings income) of Scottish taxpayers. As far as the dividend income of Scottish taxpayers is concerned, it is the UK tax bands and rates that apply. For the definition of Scottish taxpayer, see the Proforma income tax calculation guidance note.
Whether a dividend is taxable in the UK depends on the circumstances of the individual and whether the dividend is paid by a UK
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