UK: Treatment of distribution as dividend not of capital nature determined under foreign law (Court of Appeal decision)

Turns on applicable foreign corporate law mechanism used to make the distribution

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May 16, 2025

The Court of Appeal held in Beard v HMRC that whether a distribution received by an individual or trust from a non-UK resident company is a “dividend not of a capital nature,” and thus subject to income tax in the hands of the individual or trust, depends on the applicable foreign corporate law mechanism used to make the distribution.

Read a May 2025 report prepared by the KPMG member firm in the UK

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