Commentary

A1.140 Dividends and distributions

Administration and compliance

A1.140 Dividends and distributions

A1.140 Dividends and distributions

Income tax is charged (under ITTOIA 2005, Pt Ch 3) on all dividends (including capital dividends) and other distributions of companies resident in the UK. The term distributions includes certain bonus issues of shares and other benefits derived by a shareholder from a company.

The charge to corporation tax on income now applies to any dividend or other distributions of a company, but only if the distribution is not exempt1. A distribution is exempt if it is exempt under CTA 2009, Pt 9A Ch 2 (distributions received by small companies) or CTA 2009, Pt

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