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Preference Dividends (Treated as Debt in the accounts)

A company has issued 10% preference shares (treated as debt ibn the accounts). Are the payments interest or dividends? What is the tax treatment of the payments, both for the company and the individual receiving the payment?

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The 10% preference dividends...

...are taxed just like Ordinary Dividends - ie no CT deduction for the paying company and the recipient is taxed on the sum of the dividend + tax credit at the appropriate dividend tax rate for the individual.

ebenezer cuckpowder

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