Commentary

E1.414 Dividends etc from UK resident companies—dividend tax credits

Personal and employment tax

E1.414 Dividends etc from UK resident companies—dividend tax credits

E1.414 Dividends etc from UK resident companies—dividend tax credits

The taxation of dividends was radically altered with effect for 2016/17 onwards. The dividend tax credit was abolished and dividend rates (see E1.101E) adjusted accordingly1.

Tax credits prior to 2016/17

Subject to the exceptions listed below, a UK resident or an 'eligible non-UK resident' who receives a qualifying distribution made by a UK resident company is entitled to a tax credit of 100/90 of the amount or value of the distribution2.

An 'eligible non-UK resident' is an individual who at any time in the tax year in which a qualifying distribution is received

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