Personal Tax- Part and Full Distribution Disposal of Shares? Dividend/Capital Distribution

personal-tax-part-and-full-distribution-disposal-of-shares-dividend-distribution

Personal Tax- Part and Full Distribution Disposal of Shares? Dividend/Capital Distribution

16th January 2024

IRIS Personal Tax- Part and Full Distribution of Shares? Dividend Distribution

If a Share: There is a Dividend Distribution option in PT (Capital Asses/ Shareholdings/ Dividends)- see the very bottom for image

If a Non Share/Dividend Capital distribution – If you cannot find a dedicated box on the SA100, then create them under ‘Other Capital Gains’ as a gain(or loss). Then add a note: either go to Reliefs/Misc/ additional information – SA100. Or under Capital Assets, Edit, Losses and Other info and tick ‘Additional Information’. To claim Entrepreneurs’ relief – click the box for ‘Business Assets’.

IRIS Personal Tax has no tool/function/reports for the ‘Part’ and then ‘Full’ Distribution disposal of Shares (For Example: Liquidation Payments received from Liquidators etc). Your client has 50 shares and need to to record the Part Distribution of shares in one year and a Full Distribution in a later year. You have several options under Capital Assets/ Shareholdings- if you are unsure then contact a Tax Advisor Or HMRC Support on what they recommend.

1. Create 50 shares and dispose only 25 in a year (add a note to state Part Distribution) and in later year for the rest of the 25 shares to dispose (add a note to state Full Distribution etc)
2. Create 50 shares and dispose all in a year (add a note to state Part Distribution) and in a later year recreate the same 50 shares and dispose all that year (add a note to state Full Distribution etc to state these shares are the same as prior year)
3. Create them under ‘Other Capital Gains’ as a gain(or loss) and add a note to state Part/Full Distribution for each year.
4. To add a note: either go to Reliefs/Misc/ additional information – SA100. Or under Capital Assets, Edit, Losses and Other info and tick ‘Additional Information’.

If a ‘Dividend Distribution’ – create the share and go to Dividends, select the share and there is a option for Distribution and choose the relevant option and amount