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. [Recipient is a company](https://library.croneri.co.uk/po-heading-id_FqDE4AmTkkenGLV7zmZNAQ)
3.1. Small?
3.1.1. < 50 employees
3.1.2. Turnover and balance sheet <= €10m
3.1.3. Incl. 100% linked enterprises
3.1.4. Incl. % of partner enterprises
3.2. [Exemption if small](https://library.croneri.co.uk/po-heading-id_hYYsddUvDUelZfGjdAv-uA)
3.2.1. Payer
3.2.1.1. UK resident
3.2.1.2. Qualifying territory
3.2.2. Dividend
3.2.2.1. Not interest
3.2.2.2. Not deductible
3.2.3. Not tax avoidance
3.3. If not small
3.3.1. Dividend
3.3.1.1. [Potential exemption](https://library.croneri.co.uk/po-heading-id_kDSoP39zlE6SASwFFQOzvA)
3.3.1.2. Not interest
3.3.1.3. Not deductible
3.3.2. Not tax avoidance
4. Recipient is an individual
4.1. Income tax at dividend rates
4.1.1. Basic rate 10.75%
4.1.2. Higher rate 35.75%
4.1.3. Additional rate 39.35%
4.2. Tax free allowance
4.2.1. £500 for 26-27
4.3. Tax for payer
4.3.1. Not deductibe
4.3.2. No NICs on dividends