Dividend tax (UK)

Updated: Aug 20, 2021

A tax introduced in 1965 at the same time as corporation tax but discontinued since the introduction of the imputation system in 1973. It was in the form of an income tax payable on dividends paid by limited companies. The tax was paid in addition to corporation tax, deducted from the dividend before payment and accounted for by the company to the Inland Revenue. There were certain complicated provisions with reference to dividends received by a company and then paid over to its members The aim of these was to prevent double taxation.

Reference: The Penguin Business Dictionary, 3rd edt.

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