Interim dividend meaning

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HMRC v Peter Gould [2024] UKUT 285 (TCC). Peter Gould (PG) and Nicholas Gould (NG) were the principal shareholders of Regis Group (Holdings) Ltd (Regis). On 31 March 2016, the board, which included PG and NG, approved an interim dividend of £40m. NG received his distribution in the 2015-16 tax year. PG’s amount, relating to the same share class, was paid in 2016-17, when he was not UK resident. HMRC contended that, for income tax purposes, PG should be regarded as having received his interim dividend at the same time as NG, that is, when he was still UK resident. A dividend is taxable in the tax year in which it becomes a debt that is due and payable...

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A recurring scenario is that payments are made on account of dividends during a financial year, with the expectation of declaring a dividend at the year end. If the company fails, there are then no distributable profits from which a dividend can be declared and the on‑account payments, often treated as loans, are recoverable. In private companies, directors/shareholders are frequently advised to adopt this approach as a tax‑saving measure... When can dividends be declared? Under Part 23 of the Companies Act 2006 (CA 2006), distributions may only be made to members out of profits available for that purpose. A company’s profits available for distribution are its accumulated, realised profits, so far as not previously applied by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital... The amount of profits available for distribution is determined by reference to the company’s last annual accounts, subject to two exceptions: where the distribution would breach...

STOP PRESS: A major overhaul of the UK listing regime took effect on 29 July 2024, including scrapping the premium and standard listing segments and introducing a single listing category covering equity shares in commercial companies. That commercial companies category is strongly disclosure‑led and sits alongside other listing categories, namely the shell companies, secondary listing and closed ended investment fund categories. To implement the reforms, a new UK Listing Rules sourcebook came into force and the previous Listing Rules sourcebook was revoked. For further information, see Practice Note: Reform of the UK listing regime—fundamentals. This Practice Note describes the regime prior to 29 July 2024. It gives a general overview of a listed company’s financial reporting obligations as regards financial reporting under the Listing Rules and the Disclosure Guidance and Transparency Rules (DTR). These obligations are in addition to a company’s general legal obligations as regards accounts and reports in its home jurisdiction...

ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note sets out: the overarching concept of controlled foreign company (CFC) rules the UK’s CFC regime before its reform (ie from 2013) the application of EU rules to the UK’s CFC regime via the cases of Cadbury Schweppes, Vodafone 2 and the CFC and dividend GLO how EU principles could apply to the UK’s new CFC rules What are controlled foreign company rules? CFC rules are anti-avoidance measures adopted by countries concerned that domestic companies might artificially move profits to companies situated in low-tax jurisdictions...

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Company registration number: [ insert company number ] [ insert company name ] [ LIMITED OR LTD ] Minutes for a meeting of the board of directors (the Meeting) of [ insert company name ] [ Limited OR Ltd ] (the Company) Held at [ insert place of meeting ] Held on [ insert day, month and year of meeting ] at [ insert time of meeting ] [ am OR pm ] Present: [ Insert names of directors attending, in person or by any remote method (unless such methods are expressly excluded by the company’s articles of association) ] [ by [ insert means of attendance for each director joining remotely ] ] [ In attendance: ] [ [ Insert name of any person present, in person or by any remote means, who does not count towards the quorum for the meeting (eg the company secretary, any legal advisers) ] ] [...