Originally posted by EinsteinTax
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Splitting Dividends across Tax Years
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Originally posted by EinsteinTax View PostIt is the date on which the dividend is paid that determines the tax point, not when it is declared. If a dividend is declared on 1st April 2016, but not paid until 10th April 2016, it will be treated as 16/17 income.Comment
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Originally posted by jamesbrown View PostCompletely false. It's when the dividend is declared to be paid. In other words, when it becomes unconditionally available to the recipient. The payment date is irrelevant. Frankly, it's ridiculous that some contractors don't know this.Comment
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Originally posted by ContrataxLtd View PostAny possibly more worrying that a lot of accountants don't know this?Comment
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Originally posted by jamesbrown View PostCompletely false. It's when the dividend is declared to be paid. In other words, when it becomes unconditionally available to the recipient. The payment date is irrelevant. Frankly, it's ridiculous that some contractors don't know this.Comment
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Originally posted by ContrataxLtd View PostAny possibly more worrying that a lot of accountants don't know this?
BTW I have a few shares from blue chips not in an ISA or pension, so I have always been aware of this simply because I've had to get cheques reissued in the past."You’re just a bad memory who doesn’t know when to go away" JRComment
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Originally posted by jamesbrown View PostCompletely false. It's when the dividend is declared to be paid. In other words, when it becomes unconditionally available to the recipient. The payment date is irrelevant. Frankly, it's ridiculous that some contractors don't know this.Comment
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Originally posted by pr1 View Postso I was right first time :O
107. An interim dividend can be varied and rescinded at any time before payment and can therefore only be regarded as "due and payable" when the date for payment arrives.
108. The main case law authority is Potel v CIR (1970), 46 TC 658 HC which indicates that the declaration of a dividend by a company and its payment are two separate matters.
109. So a dividend is paid for income tax purposes on the date on which payment may be enforced.
With appropriate resolutions and book entries it's possible to treat a dividend paid in one year as income for the previous year, but there is potential for it to be challenged so best avoided if possible.Comment
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Originally posted by pr1 View PostI think they'll be fudging it to minimise tax owed, and they'll say you "declared" the dividends in the previous tax year but didn't distribute them until afterwards
Lots of accountants do this, it's part of their job to help you be tax efficient
However, what you suggest is just fraud!Comment
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Originally posted by LondonManc View PostNLUK won't reply because you've already asked your accountant. Sorry.Comment
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