Dividends and distributions

What is a distribution?

A distribution for corporation tax purposes means any of the following:

1. A

   any dividend paid by the company, including a capital dividend

2. B

   any other distribution out of assets of the company (whether or not in cash) in respect of shares in the company except however much (if any) of the distribution:

   1. ◦

      represents repayment of capital on the shares, or

   2. ◦

      is (when it is made) equal in amount or value to any new consideration received by the company for the distribution

3. C

   any redeemable share capital issued by the company:

   1. ◦

      in respect of shares in, or securities of, the company, and

   2. ◦

      otherwise than for new consideration

4. D

   any security issued by the company:

   1. ◦

      in respect of shares in, or securities of, the company, and

   2. ◦

      otherwise than for new consideration

5. E

   any interest or other distribution out of assets of the company in respect of securities of the company that are non-commercial securities, except:

   1. ◦

      however much (if any) of the distribution