How are dividends taxed? What are the rules for non-UK residents? How do you vote a dividend? When is a dividend paid? When can a dividend be unlawful? What is a distribution?

This is a freeview 'At a glance' index to our guides to dividends and distributions, for companies and their owners.

How to tax dividends and distributions

  • A dividend is a form of distribution by a company made in respect of its share capital to its shareholders.
  • Dividends must be paid out of distributable profits. otherwise they are deemed unlawful.
  • Distributions can also be made out of capital.
  • A distribution can be made in cash or by other assets ('in specie').
  • There are complex anti-avoidance provisions in respect of distributions.
  • Advanced tax clearance can be obtained from HMRC in respect of many distributions to confirm that the anti-avoidance provisions do not apply.

Dividend tax
How do you tax dividend income? An At a glance guide to the dividend allowance and dividend tax rates.

Dividend taxation for non-UK residents
This guide considers how the changes to dividend taxation legislation since 6 April 2016 affect non-UK residents who are in receipt of dividends from UK companies.

Capital Reductions: distributing capital reserves
What is a capital reduction? How do you implement one? When should a capital reduction be undertaken?

Company Distributions: Anti-avoidance
Under the Transactions in Securities (TIS) rules, certain close company distributions are charged to Income Tax instead of under the Capital Gains Tax (CGT) regime. 

How to vote and pay a dividend

Dividends (how to pay & process): Step-by-step guide
A step-by-step guide to paying and processing dividends for companies and their owners.

Legal or unlawful dividends: Companies Act 2006
What requirements have to be met for a dividend to be legal? What is an unlawful or illegal dividend? 

Unlawful, illegal or ultra vires dividends
A guide summarising the different tax charges depending on outcomes following payment of an unlawful divdend.

Dividends: Formalities for companies 
A briefing and overview for discussion with directors.  


Dividends: Board minute 

Dividends: Tax voucher