1. Tax treatment
1.1. Payer
1.1.1. Not deductible
1.2. Recipient is an individual
1.2.1. Income tax at dividend rates
1.2.1.1. Basic rate 8.75%
1.2.1.2. Higher rate 33.75%
1.2.1.3. Additional rate 39.35%
1.2.2. Tax-free allowance
1.2.2.1. £1k for 2023-24
1.2.2.2. £500 for 2024-25
1.3. Recipient is a company
1.3.1. Small or large?
1.3.1.1. < 50 ees
1.3.1.2. T'over or BS <= £10m
1.3.1.3. Inc. 100% linked enterprises
1.3.1.4. Inc. % of partner enterprises
1.3.2. Small
1.3.2.1. Payer
1.3.2.1.1. UK R
1.3.2.1.2. Qualifying territory
1.3.2.2. Dividend
1.3.2.2.1. Not interest
1.3.2.2.2. Not deductible
1.3.2.3. Not tax avoidance
1.3.3. Not small
1.3.3.1. Dividend
1.3.3.1.1. Exempt category
1.3.3.1.2. Not interest
1.3.3.1.3. Not deductible
1.3.3.2. Not tax avoidance
1.3.4. Resource: Decision tree
2. Dividend compared to bonus
2.1. Lower rate of tax overall
2.1.1. No NICs on dividends
2.1.1.1. Resource: Calculator
2.2. Company law requirements
2.2.1. Distributable profits
2.2.2. Correct documentation
2.3. Not earnings
2.3.1. Pension contributions
2.3.2. State benefits
2.3.3. National Minimum Wage
3. Types
3.1. Interim
3.1.1. Can be varied
3.1.1.1. Resource: Pro forma
3.2. Final
3.2.1. Approved by shareholders
3.2.1.1. Resource: Pro forma
3.3. In Specie
3.3.1. Transfer of an asset
3.3.1.1. SDLT
3.3.1.2. VAT
3.3.1.3. Gain for company
3.4. Capital
3.4.1. Reduction of share capital
3.4.2. Buy-back
3.4.3. Winding-up