Companies pay corporation tax on their taxable profits without any deduction for dividends paid to shareholders.
A shareholder receives the dividend with an accompanying tax credit equal to one ninth of the dividend, which is equivalent to 10% of the dividend plus tax credit. The tax credit is equivalent to the basic rate of income tax on dividends.Last Updated
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Corporation tax
06: Dividends
Tax rules are subject to change. The FCA does not regulate tax advice.
