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Readers' forum : Dividend dated

26 July 2016
Issue: 4560 / Categories: Forum & Feedback

Can a dividend be treated as paid in a previous year?

I have a client who is normally a higher rate taxpayer and has undrawn profits in his old personal service company. Unbeknown to me he made a large personal pension contribution in 2015-16 which means that he could have withdrawn a substantial dividend tax-free.

I cannot see any definitive answer on whether the payment date can be regarded as the date the dividend is credited to the director’s loan account. The company has plenty of money to pay a dividend it’s just that it did not make the payment by 5 April 2016. I should be grateful for readers’ thoughts on whether there is any way of redeeming the situation.

It does occur to me that the marriage allowance can be transferred but that’s small compensation. Further I presume there is no possibility of moving pension relief from one year to the next.

As far as...

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