HMRC internal manual

Company Taxation Manual

ACT: FID: general: election: procedure for


A FID election:

  • had to be made by notice to the Inspector,
  • had to be made before or at the time of payment,
  • could not be revoked after the dividend is paid,
  • could be revoked by a notice before the dividend is paid.

The election could be made in a letter. This had clearly to identify the dividend to which the election related.

A single notice had to be used where dividends were paid on more than one share.

A late election was not accepted because this affected the company’s shareholders also.

An authorised unit trust did not make an FID election. See ICTA88/S468K (3)(a).