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Dividends

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Dividends

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarTax Tutor.
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  • November 29, 2019 at 6:06 pm #554174
    Avataralaccountancy
    Member

    Hi Sir

    Are dividends taxed on the date that they are received or declared?

    What happens if dividends are declared in the same year that the tax payer dies?

    What year would the tax be due and would the dividend proceeds be included in their death estate?

    Thank you

    December 2, 2019 at 2:42 pm #554457
    AvatarTax Tutor
    Member

    The ACCA set a P6 question many years ago where in the answer they stated that the treatment of dividends in the tax year of death would be to include in the income tax computation for that tax year a dividend that was declared payable prior to death though it was not actually received until after the date of death – this will not be an issue in TX-UK

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