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HMRC internal manual

Savings and Investment Manual

Dividends and other company distributions: stock dividends: the tax charge: tax treated as paid: tax years up to 2015-16

Income tax treated as paid: tax years up to 2015-16

ITTOIA05/S414 was repealed by FA16/S5 and SCH1. For stock dividend income treated as arising in tax years up to 2015-16 S414 (1) treated the person liable as having paid income tax at the dividend ordinary rate on the amount charged to tax.

ITTOIA05/S414 (2) provided that the tax treated as paid was not repayable. This applied even if the person liable was a non-taxpayer.

ITTOIA05/S414 (3) to (5) ensured that individual taxpayers did not receive credit for income tax treated as paid on more than the amount charged to income tax. For example, if the individual’s total income was reduced by deductions such as personal allowances so that the stock dividend income was only partially brought into charge, credit was given only for so much of the stock dividend income as was brought in accordingly.