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HMRC internal manual

Company Taxation Manual

Authorised investment funds: taxation of participants within the charge to IT: dividend distributions

In the hands of a participant (unit holder) within the charge to IT, dividend distributions are treated in the same manner as any other UK company dividend.

As with other dividend payments they carry a one ninth non-repayable tax credit that will satisfy any income tax liability at the starting or basic rates. This means that IT payers with liability at the starting rate for savings or basic rate will have no further tax liability on the dividend payments.

Higher rate taxpayers will have a further liability.