In page navigation

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.

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.