Income Tax Act 2007 section 14

Income charged at the dividend ordinary rate: other persons

Section 14 sets out how dividend income received by persons other than individuals (such as trustees and personal representatives) is charged at the dividend ordinary rate instead of the basic rate.

• Dividend income of non-individual persons is taxed at the dividend ordinary rate rather than the basic rate
• This applies only to income that would otherwise fall within the basic rate band
• Relevant foreign income taxed on the remittance basis is excluded from this treatment
• Exceptions exist for trustees, whose dividend income may instead be charged at the dividend trust rate or the trust rate