Technical factsheet: dividend in specie and distribution in specie in private companies

Often the question is asked about how you determine that a dividend is declared or paid. As there is no definition of dividend in UK tax or company law, the question has to be answered by reference to the facts. This factsheet looks at company law, reporting and tax issues to provide a broad overview of issues in relation to dividends and distributions in specie. It also addresses other related matters such as accounting treatment, paperwork and members' obligations around illegal dividend.