Tax on Dividend income

Ade
Ade Registered Posts: 2 New contributor 🐸
in Chat and off-topic discussion
Hello, I own a limited company that solely invest in the stock market for dividend income and capital gains. In a nutshell, the registered company principal activity is buying and selling shares on the stock market.
If the company receives dividend income from investments, is this taxable especially when companies paying the dividends have paid tax before dividends are distributed?

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  • Artifin_Accountant
    Artifin_Accountant Registered Posts: 1 New contributor 🐸
    Dividend income received by a UK limited company is usually not subject to corporation tax due to dividend exemption rules, even though the paying company has already paid tax. So it is generally not taxed again in your company. However, any capital gains from share disposals are normally taxable under corporation tax unless a specific exemption applies.

    If you’d like, we at Artifin Accountants can review your company structure and investment activity to ensure everything is being treated in the most tax-efficient way.

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