Corporation Tax Act 2009 section 1305

Dividends and other distributions

Section 1305 prohibits companies from deducting dividends or other distributions when calculating their profits for corporation tax purposes.

• Dividends and other distributions paid by a company are not deductible expenses when computing taxable profits
• This means distributions are paid out of post-tax profits, not treated as a cost of doing business
• An exception exists where another specific provision in the Corporation Tax Acts expressly permits a deduction
• "Profits" here carries the same meaning as defined in Part 2 of the Act, covering both income and chargeable gains