Dividends and NCRD

[maven]

For the purposes of non-corporate distribution rate on distributed dividends, is it correct to say that dividends which are not paid out in the same accounting period to which they relate are considered "due" only once they are paid?

So, for example, dividends on profits achieved in PE 31/3/2005, but paid in late 2005, are not considered dividends until the date they are paid, and must be attributed to the PE 31/03/06 period accounts?

Thanks in advance.

[Eric Mc]

I'm pretty sure the NCRD tax relates to "Paid" dividends rather than "Proposed" dividends. However, be careful that you understand what constitutes a "Paid" dividend.

A dividend votewd and fully paid by cash/cheque in the year uis obviously "paid".

A dividend oted in the year but shown as a liability in a "Proposed Dividend" account in the balance sheet is still "unpaid" at the year end.

However, a dividend voted and not paid by cheque/cash but posted directly to a Director's Current Account would be deemed to have been "paid" to the director at the year end date for tax purposes.

[maven]

Thank you very much, that pretty much tallies with my understanding of it.