1. [Types](https://library.croneri.co.uk/po-heading-id_-g9fVh_lZ0u-hTguuIADAQ)
1.1. Interim
1.1.1. Can be varied
1.1.1.1. :memo: [Resource: Pro forma](https://library.croneri.co.uk/po-heading-id_vrG9GkrTk0qR88c1e62Nqg)
1.2. Final
1.2.1. Approved by shareholders
1.2.1.1. :memo: [Resource: Pro forma](https://library.croneri.co.uk/po-heading-id_vrG9GkrTk0qR88c1e62Nqg)
1.3. In Specie
1.3.1. Transfer of an asset
1.3.1.1. SDLT
1.3.1.2. VAT
1.3.1.3. Gain for company
1.4. Capital
1.4.1. Reduction of share capital
1.4.2. Buy-back
1.4.3. Winding-up
2. [Dividend v payroll](https://library.croneri.co.uk/po-heading-id_Ugn7ymfuLES1Qq21loqftw)
2.1. [Lower rate of tax overall](https://library.croneri.co.uk/po-heading-id_-J-hZy82ZkmWrDrgEe26cg)
2.1.1. No NICs on dividends
2.1.1.1. :iphone: [Resource: Calculator](https://library.croneri.co.uk/po-heading-id_vrG9GkrTk0qR88c1e62Nqg)
2.2. [Company law requirements](https://library.croneri.co.uk/po-heading-id_ucLNQ55sc0WKEdbTgzvSIQ#po-heading-id_XxoNXM5BQUSdCYhWj9Z6Aw)
2.2.1. [Distributable profits](https://library.croneri.co.uk/po-heading-id_RJREj_zsR06vm7sEPiOXIw)
2.2.2. Correct documentation
2.3. [Dividends are not earnings](https://library.croneri.co.uk/po-heading-id_xpaqzu9suEmMFYlrp39sAw)
2.3.1. Pension contributions
2.3.2. State benefits
2.3.3. National Minimum Wage
3. [Advising the OMB client](https://library.croneri.co.uk/po-heading-id_HbXR-gauDEuqbP53yweMQw)
4. Tax treatment
4.1. [Payer](https://library.croneri.co.uk/po-heading-id_OFGRLU3bYUuKrhOHuvF6lg)
4.1.1. Not deductible
4.2. [Recipient is an individual](https://library.croneri.co.uk/po-heading-id_G4nHPm_l4kyQz2Agflj4fQ)
4.2.1. Income tax at dividend rates
4.2.1.1. Basic rate 8.75%
4.2.1.2. Higher rate 33.75%
4.2.1.3. Additional rate 39.35%
4.2.2. Tax-free allowance
4.2.2.1. £1,000 for 2023-24
4.2.2.2. £500 for 2024-25
4.3. [Recipient is a company](https://library.croneri.co.uk/po-heading-id_FqDE4AmTkkenGLV7zmZNAQ)
4.3.1. Small?
4.3.1.1. < 50 employees
4.3.1.2. Turnover and balance sheet <= €10m
4.3.1.3. Incl. 100% linked enterprises
4.3.1.4. Incl. % of partner enterprises
4.3.2. [Exemption if small](https://library.croneri.co.uk/po-heading-id_hYYsddUvDUelZfGjdAv-uA)
4.3.2.1. Payer
4.3.2.1.1. UK resident
4.3.2.1.2. Qualifying territory
4.3.2.2. Dividend
4.3.2.2.1. Not interest
4.3.2.2.2. Not deductible
4.3.2.3. Not tax avoidance
4.3.3. If not small
4.3.3.1. Dividend
4.3.3.1.1. [Potential exemption](https://library.croneri.co.uk/po-heading-id_kDSoP39zlE6SASwFFQOzvA)
4.3.3.1.2. Not interest
4.3.3.1.3. Not deductible
4.3.3.2. Not tax avoidance
4.3.4. :thumbsup: [Resource: Decision tree](https://library.croneri.co.uk//po-heading-id_vrG9GkrTk0qR88c1e62Nqg)