Commentary

D6.243 Stock dividends—non-corporate recipient: charge to income tax

Corporate tax
Corporate tax | Commentary

D6.243 Stock dividends—non-corporate recipient: charge to income tax

Corporate tax | Commentary

D6.243 Stock dividends—non-corporate recipient: charge to income tax

Overview of tax rules on stock dividends

A stock dividend is not taxed as a distribution1, but is instead taxed as 'non-qualifying income' when calculating a person's income tax liability.

If more than one person is entitled to the share capital giving rise to the stock dividend, the following rules apply to each of them as if the company had issued to each a proportionate part of the stock dividend. The proportion is taken by reference to their respective interests at the earliest date on which the company has to issue the stock

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial