Stupid question about dividends (PTC)

mi|kshake

hi,

Was working on the June 07 PTC past paper and wanted to check something.

I've never come across gross dividends before and it came up in task 2.4. I misread the question and thought that the paper was just showing the gross amount of £75 so you would have to work out the tax. Though it does actually say "she received £75 (gross) from dividends."

So gross dividends do exist? I know this is a silly question but I have recently started in tax and have never come across this so when I first saw the answer to the question I was getting well confused!

Thanks!

mi|kshake~

jimbob

as far as im aware from being a shareholder and a dividend receiver the shareholder pays tax on the income of shares so the cost of the dividend remains the same to the business however unsure whether this is recorded as gross and net on income statements as cost is still same