Ads
related to: hmrc dividends from uk companies
Search results
Results From The WOW.Com Content Network
A controlled foreign company ("CFC") is a company controlled by a UK resident that is not itself UK resident and is subject to a lower rate of tax in the territory in which it is resident. Under certain circumstances, UK resident companies that control a CFC pay corporation tax on what the UK tax profits of that CFC would have been.
In 1973, a partial imputation system was introduced for dividend payments, under which companies were required to withhold tax on dividends, called an advance corporation tax, before they were distributed to shareholders. UK companies could set off the ACT amount withheld against the overall company tax liability, subject to certain limits. [1 ...
Individuals and companies who received a dividend from a UK company received a tax credit representing the ACT paid. [16] Individuals could set off the tax credit against their income tax liability. [17] On introduction, ACT was set at 30% of the gross dividend (the actual amount paid plus the tax credit).
The disposing company must dispose of shares or an interest in shares of another company. [1] The company must have held a "substantial shareholding" in the other company for a continuous period of at least 12 months in the preceding two years. [2] This will be extended to the preceding six years for disposals on or after 1 April 2017. [3]
The FTSE 100 Index, here between 1984 and 2013, indicates value that traders in the stock market perceive the UK's top 100 companies to have, given the dividends they will pay out. Dividends can only be paid on profits above a company's "legal capital": the initial total shareholders contributed when they bought their shares.
Dividend imputation was introduced in 1987, one of a number of tax reforms by the Hawke–Keating Labor Government. Prior to that a company would pay company tax on its profits and if it then paid a dividend, that dividend was taxed again as income for the shareholder, i.e. a part owner of the company, a form of double taxation.