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D5.110 Dividends (paragraph A)

There are several types of distributions as detailed in D5.102 and one type of distribution is any dividend paid by a company, including a capital dividend¹. Therefore to establish whether a payment by a company is within this definition of distribution, an understanding of the meaning of 'dividend' and 'paid' is required.

There is no definition of dividend in UK tax and so it must be given its ordinary meaning. In this respect, the form of the payment is important, for example if it has been declared by the company's board and noted as being in respect of the share capital².

There are certain payments which may be referred to as dividends which are specifically excluded from being a distribution by the legislation as follows:

1. Ìý

   •ÌýÌýÌýÌý building society dividends³ (see D7.732)

2. Ìý

   •ÌýÌýÌýÌý certain dividends from registered societies⁴ (see D7.4121)

3. Ìý

   •ÌýÌýÌýÌý certain dividends from UK agricultural or fishing co-operatives⁵ (see D7.4122)

4. Ìý

   •ÌýÌýÌýÌý certain stock dividends⁶ (see below)