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Declared dividends

Declared dividends

Basic question I know, but can someone confirm this for me:

My client has a 31/12 year end. He declared an interim dividend on 31/12 which was actually paid on 4th Jan 12.

Am I correct in thinking that an interim dividend is only legally due when paid? (i.e I should disclose but not provide)

Many thanks


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01st Mar 2012 12:04

No - I think you are not correct

The directors declare interim dividends by means of a board resolution.  Once passed, it is an obligation - in this case, by close of business on the accounting date.  I think it should be included in the accounts as a dividend in the year and as a creditor.

Thanks (1)
By thomas
01st Mar 2012 13:00

Thanks Euan.  Can an interim

Thanks Euan.  Can an interim dividend not be recinded or varied by the directors?  My tax notes say 'remember an interim dividend can never be a proposed dividend' and Im trying to understand why.

Is this because interim dividends can be declared by the directors and a final dividend would be approved the shareholders?

I have a resolution signed by both of the shareholders approving an interim dividend on 31/12/11, is that what makes this one ok to provide for?

Many thanks




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