Income Tax (Trading and Other Income) Act 2005 section 382

Contents of Chapter

Section 382 sets out the scope and contents of the Chapter dealing with dividends and other distributions from UK resident companies, including the income tax charge, deemed dividends and distributions, share incentive plan provisions, and relevant exemptions.

• The Chapter imposes an income tax charge on dividends and other distributions from UK resident companies, and in certain circumstances treats dividends as paid or distributions as made even where no actual payment or distribution has occurred.
• Special rules apply where the tax charge relates to shares awarded under a Schedule 2 share incentive plan (SIP), and separate provisions deal with tax treated as paid and reliefs available for certain distributions regardless of whether they fall within this Chapter.
• Several exemptions from the charge are signposted, including income from individual savings plans (ISAs), venture capital trust dividends, amounts applied by SIP trustees to acquire dividend shares or retained for reinvestment, and cases where shares cease to be subject to a SIP and the participant is a "good leaver".
• The term "dividends" in this Chapter specifically excludes stock dividends, which are taxed separately under their own provisions and do not fall within the scope of this charge.