Dividend exemption

The UK currently taxes foreign dividends received by UK companies (with the availability of a tax credit for overseas taxes suffered), but exempts domestic dividend receipts. Draft legislation proposes the introduction of a dividend exemption system which will operate by making all dividend receipts taxable, unless they fall within one of a list of exemptions. The effect will be that both foreign and domestic dividends received by large and medium groups on ordinary shares and most non-ordinary shares will be exempt from UK tax. A targeted anti-avoidance rule will operate to prevent avoidance activity seeking to exploit these dividend exemptions.

Leave a Reply

↑ back to top

The BABCPHL recognizes our Club Level Members:

  • Almac
  • American Airlines
  • Baker Tilly
  • Citrin Cooperman
  • Duane Morris
  • EisnerAmper LLP
  • Faegre Drinker Biddle & Reath LLP
  • Forensic Resolutions
  • Johnson, Kendall & Johnson, Inc.
  • Johnson Matthey
  • Morgan Lewis
  • Olympus
  • Penn Medicine