Our Glossary of life insurance terms
distribution of a companies profits to shareholders. Dividends
are normally not liable to basic rate tax for the recipient on
the basis that they have met their liability under corporation
tax. However a recipient who is a higher rate tax payer is
liable to the difference in tax due.
This is only a guide and we cannot confirm positively what tax
would actually be due you should always consult an accountant
before making any decision that could create a tax liability.
For more detailed tax information please see the inland revenues
Dividends are not guaranteed and companies do not have to
declare a dividend is due.