Income Tax (Trading and Other Income) Act 2005 section 384

Income charged

Section 384 sets out how the amount of income from UK company dividends and other distributions is determined for income tax purposes.

• Tax is charged on the amount or value of dividends paid and other distributions made during the tax year
• The general charging rule is subject to special rules for cash dividends retained in Share Incentive Plans (SIPs) that are later paid over
• A separate rule applies when dividend shares cease to be subject to a SIP
• The date a dividend is treated as "paid" is normally the date it becomes due and payable, which depends on the type of dividend and the company's resolutions