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Companies Act & Corporate FilingsUnited Kingdom
Free Dividend Voucher Template
A Dividend Voucher is the statutory shareholder distribution record issued by a United Kingdom company on each dividend payment. The voucher records the date, the amount per share, the total payment to the shareholder, the tax year and the company's declaration. The voucher is the shareholder's primary evidence of dividend income for their HMRC self assessment return under the Income Tax (Trading and Other Income) Act 2005 sections 383 to 401. The 2026/27 dividend tax rates increased from 6 April 2026 (Autumn Budget 2025) — basic rate 10.75% (up from 8.75%), higher rate 35.75% (up from 33.75%), additional rate 39.35% (unchanged). Our free UK template builds a structured Dividend Voucher with four Expert clauses on the section 836 relevant accounts requirement, the section 830 distributable profits test, director personal liability for unlawful distributions, and scrip dividend / DRIP election routes.
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Dividend Voucher — Shareholder Distribution Record
Mayfield Innovations Limited (Company No. 11234567) · Voucher DV-2026-07-0044 · 31 July 2026
Mayfield Innovations Limited, a private limited company (Ltd) (Company No. 11234567), registered office at 3 Saint Pauls Square, Birmingham B3 1RB, hereby records the payment of a interim dividend to Catherine Mary Pemberton in accordance with section 1097 of the Corporation Tax Act 2010 and section 830 of the Companies Act 2006.
This voucher is the shareholder's formal record of the distribution and must be retained for self-assessment tax reporting purposes for the 2026/27 tax year.
This voucher is the shareholder's formal record of the distribution and must be retained for self-assessment tax reporting purposes for the 2026/27 tax year.
1. PAYING COMPANY
| COMPANY NAME | Mayfield Innovations Limited |
| COMPANIES HOUSE NUMBER | 11234567 |
| REGISTERED OFFICE | 3 Saint Pauls Square, Birmingham B3 1RB |
| COMPANY TYPE | a private limited company (Ltd) |
2. SHAREHOLDER
| SHAREHOLDER NAME | Catherine Mary Pemberton |
| SHAREHOLDER ADDRESS | 47 Bromsgrove Road, Redditch B97 4RJ |
| SHARE CLASS HELD | Ordinary shares |
| NUMBER OF SHARES HELD | 300000 |
| HOLDING PERCENTAGE | 30% |
3. DIVIDEND DECLARATION (CTA 2010 S.1097)
| DIVIDEND TYPE | Interim dividend |
| RATE PER SHARE | GBP 0.08 |
| NUMBER OF SHARES IN HOLDING | 300000 |
| TOTAL AMOUNT PAYABLE | GBP 24,000.00 |
| DECLARATION DATE | 15 July 2026 |
| VOUCHER NUMBER | DV-2026-07-0044 |
4. PAYMENT
| PAYMENT DATE | 31 July 2026 |
| PAYMENT METHOD | Bank transfer (BACS / CHAPS) |
| PAYMENT REFERENCE | MIL-DIV-CP-2026-07-31 |
5. DECLARATION OF SOLVENCY (CA 2006 s.836). The directors of Mayfield Innovations Limited confirm that the distribution recorded above is made out of profits available for the purpose under section 830 of the Companies Act 2006 and is justified by interim accounts (interim distributable profits route under CA 2006 s.836), signed on 30 June 2026. Distributable profits confirmation: The directors confirm that the distributable profits at the date of the distribution were sufficient to support the dividend in full.
6. DISTRIBUTABLE PROFITS TEST (CA 2006 ss.830 + 836). Section 830 of the Companies Act 2006 restricts distributions to amounts available out of "accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made". Section 836 requires the distribution to be justified by reference to relevant accounts - normally the last annual accounts; for interim distributions, interim accounts; for newly incorporated companies, initial accounts.
Section 830 compliance: Confirmed - the distribution is out of accumulated realised profits net of accumulated realised losses.
Distributable reserves available: GBP 485,000.00
IFRS realised profits adjustment: Not required - the company prepares accounts under UK GAAP / FRS 102 and no realised profits adjustment is required.
Section 836 interim accounts filed at Companies House: Not applicable on the facts here.
Authority: Bairstow v Queens Moat Houses plc [2001] EWCA Civ 712 holds that the relevant accounts must justify the distribution at the moment it is made; directors who rely on inadequate accounts are personally liable to restore the unlawful distribution. Wood v Holden [2006] EWCA Civ 26 confirms that the question of whether a payment is a "distribution" within section 1000 of the Corporation Tax Act 2010 turns on the substance of the transaction.
Section 830 compliance: Confirmed - the distribution is out of accumulated realised profits net of accumulated realised losses.
Distributable reserves available: GBP 485,000.00
IFRS realised profits adjustment: Not required - the company prepares accounts under UK GAAP / FRS 102 and no realised profits adjustment is required.
Section 836 interim accounts filed at Companies House: Not applicable on the facts here.
Authority: Bairstow v Queens Moat Houses plc [2001] EWCA Civ 712 holds that the relevant accounts must justify the distribution at the moment it is made; directors who rely on inadequate accounts are personally liable to restore the unlawful distribution. Wood v Holden [2006] EWCA Civ 26 confirms that the question of whether a payment is a "distribution" within section 1000 of the Corporation Tax Act 2010 turns on the substance of the transaction.
7. UNLAWFUL DISTRIBUTION - DIRECTOR LIABILITY (CA 2006 s.847). Section 847 of the Companies Act 2006 makes a distribution unlawful where it is made other than out of profits available for the purpose. Directors are personally liable to restore the distribution to the company's assets under section 847(1); shareholders are liable to repay the distribution under section 847(2) where they knew or had reasonable grounds to believe that the distribution was unlawful.
Section 847 review completed: Yes - the directors have reviewed the legality of the distribution against section 847.
Knowing receipt review of the shareholder: Completed - the recipient shareholder has been assessed under the Re First Independent Factors test.
Bairstow accounts review: Completed - the directors confirm the accounts on which they rely are adequate to justify the distribution under Bairstow v Queens Moat Houses.
The leading authorities are Re Marini Ltd; Liquidator of Marini Ltd v Dickenson [2003] EWHC 334 (Ch) - directors personally liable to restore unlawful distributions; Re First Independent Factors and Finance Ltd [2008] EWHC 2089 (Ch) - liability extended to director-shareholders as constructive trustees where they knew or ought to have known of the unlawful distribution.
Directors' liability narrative:
The directors of Mayfield Innovations Limited reviewed the interim management accounts to 30 June 2026 (signed 12 July 2026 by the company's auditor) and confirm distributable reserves of GBP 485,000 at the date of declaration. The total interim dividend across all 1,000,000 issued ordinary shares is GBP 80,000 (GBP 0.08 per share x 1,000,000 shares); the distribution is therefore amply covered by distributable reserves. The Bairstow v Queens Moat Houses test (accounts adequate to justify the distribution at the moment it is made) is satisfied. No director has any reason to believe the distribution is unlawful; no Re Marini liability arises. The recipient shareholder (Catherine Pemberton, a director and 30% shareholder) is a knowing-recipient under the Re First Independent Factors test but has been advised of the basis of the distribution and the Bairstow review.
Section 847 review completed: Yes - the directors have reviewed the legality of the distribution against section 847.
Knowing receipt review of the shareholder: Completed - the recipient shareholder has been assessed under the Re First Independent Factors test.
Bairstow accounts review: Completed - the directors confirm the accounts on which they rely are adequate to justify the distribution under Bairstow v Queens Moat Houses.
The leading authorities are Re Marini Ltd; Liquidator of Marini Ltd v Dickenson [2003] EWHC 334 (Ch) - directors personally liable to restore unlawful distributions; Re First Independent Factors and Finance Ltd [2008] EWHC 2089 (Ch) - liability extended to director-shareholders as constructive trustees where they knew or ought to have known of the unlawful distribution.
Directors' liability narrative:
The directors of Mayfield Innovations Limited reviewed the interim management accounts to 30 June 2026 (signed 12 July 2026 by the company's auditor) and confirm distributable reserves of GBP 485,000 at the date of declaration. The total interim dividend across all 1,000,000 issued ordinary shares is GBP 80,000 (GBP 0.08 per share x 1,000,000 shares); the distribution is therefore amply covered by distributable reserves. The Bairstow v Queens Moat Houses test (accounts adequate to justify the distribution at the moment it is made) is satisfied. No director has any reason to believe the distribution is unlawful; no Re Marini liability arises. The recipient shareholder (Catherine Pemberton, a director and 30% shareholder) is a knowing-recipient under the Re First Independent Factors test but has been advised of the basis of the distribution and the Bairstow review.
8. TAX TREATMENT - 2026/27 (ITTOIA 2005 ss.383-401). Sections 383 to 401 of the Income Tax (Trading and Other Income) Act 2005 govern the taxation of dividend income for UK individual shareholders. From 6 April 2026 the dividend tax rates are: basic rate 10.75% (up from 8.75%); higher rate 35.75% (up from 33.75%); additional rate 39.35% (unchanged). The dividend allowance remains at GBP 500 for 2026/27. The increases were announced by Chancellor Rachel Reeves at the Autumn Budget on 26 November 2025.
Shareholder tax band: Higher rate - 35.75% tax applies to dividends above the GBP 500 allowance for 2026/27.
Dividend allowance use: YES - the dividend exceeds GBP 500 and the full allowance is used by this voucher.
Self-assessment reporting status: Reportable on the shareholder's Form SA100 dividends supplement (HMRC SA Helpsheet HS300).
Interaction with personal allowance. Dividends sit on top of other taxable income for the purpose of band determination; the personal allowance (GBP 12,570 for 2026/27, frozen until 5 April 2028) is allocated to non-dividend income first. Where a shareholder has only dividend income, the personal allowance and the GBP 500 dividend allowance combine to give a tax-free buffer.
Tax narrative:
Catherine Pemberton is a higher-rate taxpayer for 2026/27. The GBP 24,000 dividend is allocated as follows: GBP 500 falls within the dividend allowance (no tax); the remaining GBP 23,500 is taxed at the higher dividend rate of 35.75% (post-Autumn Budget 2025 increase from 33.75%) giving a tax liability of GBP 8,401.25. The dividend must be reported on her Form SA100 dividends supplement for the 2026/27 tax year by 31 January 2028. The shareholder is advised to set aside the tax in advance of the 31 January 2027 payment on account date.
Shareholder tax band: Higher rate - 35.75% tax applies to dividends above the GBP 500 allowance for 2026/27.
Dividend allowance use: YES - the dividend exceeds GBP 500 and the full allowance is used by this voucher.
Self-assessment reporting status: Reportable on the shareholder's Form SA100 dividends supplement (HMRC SA Helpsheet HS300).
Interaction with personal allowance. Dividends sit on top of other taxable income for the purpose of band determination; the personal allowance (GBP 12,570 for 2026/27, frozen until 5 April 2028) is allocated to non-dividend income first. Where a shareholder has only dividend income, the personal allowance and the GBP 500 dividend allowance combine to give a tax-free buffer.
Tax narrative:
Catherine Pemberton is a higher-rate taxpayer for 2026/27. The GBP 24,000 dividend is allocated as follows: GBP 500 falls within the dividend allowance (no tax); the remaining GBP 23,500 is taxed at the higher dividend rate of 35.75% (post-Autumn Budget 2025 increase from 33.75%) giving a tax liability of GBP 8,401.25. The dividend must be reported on her Form SA100 dividends supplement for the 2026/27 tax year by 31 January 2028. The shareholder is advised to set aside the tax in advance of the 31 January 2027 payment on account date.
9. SCRIP DIVIDEND / DRIP (ITTOIA 2005 ss.410-413 + CTA 2010 s.1051). Sections 410 to 413 of the Income Tax (Trading and Other Income) Act 2005 set out the stock dividend election regime: where the shareholder elects to take new shares in lieu of cash, the value of the shares is treated as income at the "cash equivalent" calculated under section 1051 of the Corporation Tax Act 2010. The scrip dividend treatment preserves the income character of the distribution but defers the cash outflow from the company.
Election made: Cash - shareholder takes the cash dividend.
Where a Dividend Reinvestment Plan (DRIP) is in place, the cash dividend is paid as normal and the DRIP administrator applies the cash to purchase new shares in the market on the shareholder's behalf - this is distinct from a true scrip dividend election under sections 410-413 (in a DRIP, the dividend remains taxable in cash even though no cash reaches the shareholder).
Election made: Cash - shareholder takes the cash dividend.
Where a Dividend Reinvestment Plan (DRIP) is in place, the cash dividend is paid as normal and the DRIP administrator applies the cash to purchase new shares in the market on the shareholder's behalf - this is distinct from a true scrip dividend election under sections 410-413 (in a DRIP, the dividend remains taxable in cash even though no cash reaches the shareholder).
10. VOUCHER DECLARATION. The signatory confirms, on behalf of Mayfield Innovations Limited, that the dividend recorded above has been declared and paid in accordance with the Companies Act 2006 and the Corporation Tax Act 2010, that the distribution is justified by the relevant accounts described above, and that this voucher is issued to the shareholder as the formal record of the distribution under section 1097 of the Corporation Tax Act 2010.
DIRECTOR / COMPANY SECRETARY (ISSUING VOUCHER)
[Issuing Officer Name]
For and on behalf of Mayfield Innovations Limited
Date: ____________________
Available as a print-ready PDF or an editable Microsoft Word (.docx) file.
What Is a Dividend Voucher?
A Dividend Voucher is the statutory shareholder distribution record issued by a United Kingdom company on each dividend payment. The voucher records the company name and number, the shareholder name, the class and number of shares held, the dividend per share, the total payment, the payment date, the tax year and the directors' declaration that the dividend has been lawfully declared. The voucher is the shareholder's primary evidence of dividend income for their HMRC self assessment return; it is also the company's primary record of the distribution for accounting and tax purposes. Vouchers are issued on every dividend — interim or final — and one voucher is issued per shareholder per distribution.
Dividends are governed by Part 23 of the Companies Act 2006 (ss.829-853). Section 829 defines a distribution; section 830 sets the distributable profits test (a company may only make a distribution out of its accumulated realised profits less accumulated realised losses); section 836 requires every distribution to be justified by reference to "relevant accounts" — the last annual accounts for a regular dividend, interim accounts for an interim distribution outside the annual cycle, or initial accounts for a newly incorporated company. The directors who authorise an unlawful distribution are personally liable to repay the company under section 847 — see the Court of Appeal in It's a Wrap (UK) Ltd v Gula [2006] EWCA Civ 544 on director liability where the test was not satisfied.
Dividend tax rates increased from 6 April 2026. Sections 383 to 401 of the Income Tax (Trading and Other Income) Act 2005 govern United Kingdom individual dividend taxation. The 2026/27 rates: basic rate 10.75% (up from 8.75%), higher rate 35.75% (up from 33.75%), additional rate 39.35% (unchanged). The dividend allowance remains GBP 500. The increases were announced by Chancellor Rachel Reeves at the Autumn Budget on 26 November 2025. HMRC Self Assessment Helpsheet HS300 governs reporting. Where the shareholder elects new shares in lieu of cash (scrip dividend), sections 410-413 of ITTOIA 2005 apply — the value of the shares is taxable income at the "cash equivalent" under section 1051 of the Corporation Tax Act 2010. A Dividend Reinvestment Plan (DRIP) is distinct — the cash dividend is paid and reinvested by an administrator; the dividend remains taxable in cash terms.
What's Covered in This Template
Our United Kingdom Dividend Voucher template builds a structured shareholder distribution record — company identification, shareholder identification, shares held, dividend per share, total payment, payment date, tax year, and four Expert clauses on the section 836 relevant accounts requirement, the section 830 distributable profits test, director personal liability and scrip / DRIP election routes.
Standard Voucher Particulars
Captures every required particular — company name and company number, shareholder name and address, class and number of shares held, dividend per share (in pence), total payment to the shareholder, payment date, tax year and voucher number for the company record.
2026/27 Dividend Tax Rates Post-Autumn Budget 2025
The voucher records the dividend in the tax year. From 6 April 2026 the United Kingdom dividend tax rates are: basic 10.75% (up from 8.75%), higher 35.75% (up from 33.75%), additional 39.35% (unchanged). The dividend allowance remains GBP 500. Rate increases announced by Chancellor Rachel Reeves on 26 November 2025.
Directors' Declaration of Lawful Distribution
The voucher includes the directors' declaration that the dividend has been lawfully declared under Companies Act 2006 sections 830 and 836 — the company has distributable profits sufficient to support the distribution and the relevant accounts justify the dividend. The declaration is signed by an authorised director.
Interim vs Final Dividend Distinction
Pre-frames the distinction. A final dividend is declared by the shareholders in general meeting (or by written resolution) on the directors' recommendation, typically once a year. An interim dividend is declared by the directors during the year — typically quarterly or half-yearly. The substantive Companies Act 2006 rules (ss.830, 836) apply identically.
Tax Year Reporting — HMRC SA Helpsheet HS300
Captures the tax year (e.g. 2026/27 runs 6 April 2026 to 5 April 2027). The voucher is the shareholder's primary evidence of dividend income for the HMRC self assessment return. HMRC Self Assessment Helpsheet HS300 governs reporting; the Personal Tax Account online service captures dividend income automatically for shareholders below the SA threshold.
Section 836 Relevant Accounts (Expert)
Expert clause structures the section 836 relevant accounts requirement. Every distribution must be justified by reference to "relevant accounts" — the last annual accounts for a regular dividend, interim accounts for an interim distribution outside the annual cycle, or initial accounts for a newly incorporated company. The directors confirm distributable profits at the date of distribution are sufficient.
Section 830 Distributable Profits Test (Expert)
Expert clause structures the section 830 distributable profits test. A company may only make a distribution out of its accumulated realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated realised losses, so far as not previously written off in a reduction or reorganisation of capital. The test is applied at the date of distribution.
Director Personal Liability — CA 2006 s.847 (Expert)
Expert clause covers director personal liability for unlawful distributions under Companies Act 2006 s.847. The directors who authorised the distribution are personally liable to repay the company. Cites It's a Wrap (UK) Ltd v Gula [2006] EWCA Civ 544 on the leading authority. The liability survives subsequent reorganisations and is not extinguished by shareholder ratification where the company is insolvent.
Scrip Dividend Election — ITTOIA 2005 ss.410-413 (Expert)
Expert clause covers the scrip dividend election under sections 410-413 of the Income Tax (Trading and Other Income) Act 2005. Where the shareholder elects new shares in lieu of cash, the value of the shares is taxable income at the "cash equivalent" under section 1051 of the Corporation Tax Act 2010. The election preserves income tax character but defers cash receipt.
DRIP vs Scrip — Two Different Mechanisms
The voucher distinguishes Dividend Reinvestment Plan (DRIP) from scrip dividend. DRIP — cash dividend is paid and reinvested by an administrator buying shares in the market; the dividend remains taxable in cash terms. Scrip — new shares are issued by the company; the cash equivalent is taxed as income under ITTOIA 2005 ss.410-413.
Voucher Numbering and Retention
Each voucher carries a unique voucher number for the company record. Vouchers are retained by the company for six years (Companies Act 2006 s.388 record retention) and by the shareholder for six years (HMRC SA record retention) to evidence dividend income on the self assessment return. The voucher number runs sequentially per company.
Dividend Allowance GBP 500 (2026/27)
The dividend allowance for 2026/27 is GBP 500 (unchanged from 2024/25). Dividend income up to GBP 500 is taxed at 0% per shareholder; income above GBP 500 is taxed at the applicable basic / higher / additional rate. The allowance is per-individual, not per-company. The voucher does not need to record the allowance — it is applied at the shareholder's SA return.
How to Build a Dividend Voucher
Follow these steps to produce a structured United Kingdom Dividend Voucher that the shareholder can use on their HMRC self assessment return and the company can rely on as the statutory distribution record.
- 1
Confirm Distributable Profits at the Date of Distribution
Before declaring the dividend, the directors must confirm distributable profits under Companies Act 2006 s.830 — accumulated realised profits less accumulated realised losses. The test is applied at the date of distribution, not the date of the relevant accounts. Where there is doubt, interim accounts should be prepared to confirm distributable profits at the distribution date.
- 2
Confirm the Relevant Accounts Support the Distribution
Companies Act 2006 s.836 requires every distribution to be justified by reference to "relevant accounts" — the last annual accounts for a regular dividend, interim accounts for an interim distribution outside the annual cycle, or initial accounts for a newly incorporated United Kingdom company. The directors confirm distributable profits are sufficient as evidenced by the accounts.
- 3
Declare the Dividend
A final dividend is declared by the shareholders in general meeting (or by written resolution) on the directors' recommendation. An interim dividend is declared by the directors during the year. Both are recorded in the board / shareholder minutes. The declaration sets the amount per share, the record date and the payment date.
- 4
Capture the Voucher Particulars
Record company name and company number, shareholder name and address, class and number of shares held, dividend per share, total payment to the shareholder, payment date, tax year and voucher number. Each shareholder receives one voucher per distribution per class held. Joint shareholders typically receive one joint voucher.
- 5
Apply the Right Tax Year
The tax year is the year in which the payment is made — 2026/27 runs 6 April 2026 to 5 April 2027. From 6 April 2026 the United Kingdom dividend tax rates increased: basic 10.75% (up from 8.75%), higher 35.75% (up from 33.75%), additional 39.35% (unchanged). The dividend allowance remains GBP 500. The voucher does not need to record the rate — it is applied at the shareholder's SA return.
- 6
Add the Directors' Declaration (Expert)
Expert clause. The voucher includes the directors' declaration that the dividend has been lawfully declared under CA 2006 sections 830 (distributable profits) and 836 (relevant accounts). The declaration is signed by an authorised director and dated. The declaration is the directors' personal warrant of lawful distribution and is relied on for the s.847 liability shield.
- 7
Address the Section 836 Relevant Accounts Requirement (Expert)
Expert clause structures the section 836 evidence base — the last annual accounts (statutory accounts filed at Companies House), interim accounts (prepared to support a distribution outside the annual cycle), or initial accounts (for a newly incorporated company). The relevant accounts must be available for inspection and must justify the distribution.
- 8
Apply the Section 830 Distributable Profits Test (Expert)
Expert clause structures the section 830 test. Distributable profits = accumulated realised profits not previously distributed or capitalised LESS accumulated realised losses not previously written off in a reduction of capital. Unrealised profits (e.g. revaluation gains) and unrealised losses are excluded — except that unrealised losses are netted against unrealised profits within the same revaluation under PLC accounting rules.
- 9
Frame Director Personal Liability (Expert)
Expert clause covers director personal liability under CA 2006 s.847 for unlawful distributions. Directors who authorised an unlawful distribution are personally liable to repay the company. Cites It's a Wrap (UK) Ltd v Gula [2006] EWCA Civ 544. The liability is preserved on subsequent reorganisations and is not extinguished by shareholder ratification where the company is insolvent at the time of ratification.
- 10
Issue the Voucher to the Shareholder
The voucher is issued to each shareholder on or shortly after the payment date. Vouchers can be issued in paper or electronic form (typically PDF). The shareholder retains the voucher for six years (HMRC SA record retention); the company retains its copy for six years (Companies Act 2006 s.388 record retention). The voucher is evidence of dividend income on the shareholder's HMRC self assessment return.
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Legal Considerations — Dividend Voucher
Dividends and other distributions in the United Kingdom are governed by Part 23 of the Companies Act 2006 (ss.829-853) and (for individual income tax) Part 4 Chapter 3 of the Income Tax (Trading and Other Income) Act 2005 (ss.383-401). Corporation Tax Act 2010 sections 1000-1119 govern the corporate tax treatment of distributions. The Dividend Voucher is the statutory shareholder distribution record on which both the company's accounting / tax treatment and the shareholder's income tax position rest.
This template is for general information and does not constitute legal advice. Distributions engage the substantive Companies Act 2006 distributable profits test, the relevant accounts justification, director personal liability for unlawful distributions and the individual / corporation tax regime. Where the distribution is large, where the company is close to the distributable profits threshold, where the shareholder is non-UK resident, or where complex group structures or scrip / DRIP elections are involved, specialist advice from a corporate-law or tax practitioner is recommended. The ICAEW, ICAS, ACCA, ATT and CIOT maintain resources on lawful distributions; HMRC publishes detailed guidance in the Company Taxation Manual.
Reviewed for the United Kingdom (England, Wales, Scotland, Northern Ireland)
Distributable Profits and Relevant Accounts — CA 2006 ss.830, 836
A company may only make a distribution out of its accumulated realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated realised losses, so far as not previously written off in a reduction or reorganisation of capital (Companies Act 2006 s.830). Every distribution must be justified by reference to "relevant accounts" (s.836) — the last annual accounts for a regular dividend, interim accounts for an interim distribution outside the annual cycle, or initial accounts for a newly incorporated company. The directors must confirm distributable profits at the date of distribution are sufficient to support the dividend in full. The distributable profits test underlies every lawful dividend.
Director Personal Liability — CA 2006 s.847
Where a distribution is made in breach of section 830 or section 836, the directors who authorised it are personally liable to repay the company under Companies Act 2006 s.847. The Court of Appeal in It's a Wrap (UK) Ltd v Gula [2006] EWCA Civ 544 confirmed that director liability arises automatically on breach — knowledge of the breach is not required. The liability survives subsequent reorganisations and is not extinguished by shareholder ratification where the company is insolvent at the time of ratification. Where the shareholder knew (or had reasonable grounds to believe) that the distribution was unlawful, the shareholder is also liable to repay the company under s.847.
Dividend Tax 2026/27 — ITTOIA 2005 ss.383-401
Sections 383 to 401 of the Income Tax (Trading and Other Income) Act 2005 govern United Kingdom individual dividend taxation. From 6 April 2026 (announced by Chancellor Rachel Reeves at the Autumn Budget on 26 November 2025): basic rate 10.75% (up from 8.75%); higher rate 35.75% (up from 33.75%); additional rate 39.35% (unchanged). Dividend allowance remains GBP 500 per individual per tax year. HMRC SA Helpsheet HS300 governs reporting. Shareholders below the SA threshold capture dividend income via the Personal Tax Account online service; shareholders above the threshold report via the SA100 return supplement SA101.
Scrip Dividends and DRIPs — ITTOIA 2005 ss.410-413
A scrip dividend (or stock dividend) is an election by the shareholder to receive new shares in lieu of cash. Sections 410 to 413 of the Income Tax (Trading and Other Income) Act 2005 govern the income tax treatment: the value of the shares is taxable income at the "cash equivalent" under section 1051 of the Corporation Tax Act 2010 — typically the market value of the new shares at the issue date. A Dividend Reinvestment Plan (DRIP) is distinct: the cash dividend is paid and reinvested by an administrator buying shares in the open market on behalf of the shareholder; the dividend remains taxable in cash terms in the United Kingdom. Both routes preserve the income character; neither converts dividend income to capital gain.
Frequently Asked Questions
Build Your Dividend Voucher
Produce a structured United Kingdom Dividend Voucher — the statutory shareholder distribution record under Companies Act 2006 sections 829-853 — with company identification, shareholder identification, shares held, dividend per share, total payment, payment date, tax year and the directors' declaration of lawful distribution. The voucher applies the 2026/27 dividend tax rates (basic 10.75%, higher 35.75%, additional 39.35%) effective 6 April 2026 following the Autumn Budget 2025 increases, and is structured for the shareholder's HMRC self assessment return under the Income Tax (Trading and Other Income) Act 2005 sections 383-401. Four Expert clauses cover the section 836 relevant accounts requirement, the section 830 distributable profits test, director personal liability for unlawful distributions under section 847 (It's a Wrap [2006] EWCA Civ 544), and the scrip / DRIP election routes under ITTOIA 2005 sections 410-413.
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