Dividend Declaration (UK)
BOARD RESOLUTION — INTERIM DIVIDEND DECLARATION
[Company Name]
(Company Number: [Company Number])
Registered Office: [Registered Office Address]
Date: [Resolution Date]
Directors present / signing: [Directors Present]
[Chairperson Name] acted as chairperson.
The directors confirmed that a quorum was present and that the company has sufficient distributable profits to support the proposed dividend, having regard to the company's most recent accounts for the [Financial Period].
RESOLUTION
IT WAS RESOLVED THAT:
An interim dividend of [Dividend Per Share] on [Share Class] be and is hereby declared, payable on [Payment Date], to the holders of such shares on the register of members as at [Resolution Date].
The total amount of the dividend shall be [Total Dividend].
The directors confirm that the dividend is justified by reference to the company's distributable profits and is lawful pursuant to sections 830–847 of the Companies Act 2006.
SIGNED by the directors:
Signed: ____________________________
Name: ____________________________
Director of [Company Name]
Signed: ____________________________
Name: ____________________________
Director of [Company Name]
DIVIDEND VOUCHER
[Company Name]
Company Number: [Company Number]
Registered Office: [Registered Office Address]
Date of payment: [Payment Date]
Shareholder name: [Shareholder Name]
Shares held: [Shares Held]
Dividend per share: [Dividend Per Share]
Total dividend payable: [Shareholder Dividend]
This voucher confirms the gross dividend paid. There is no tax credit. You may need to declare this dividend income on your self-assessment tax return. Please retain this voucher for your tax records.
For and on behalf of [Company Name]
Authorised signatory: ____________________________
Date: ____________________________
Director
________________
Signature
Date: ________________
Director
________________
Signature
Date: ________________
What Is a Dividend Declaration (UK)?
A Dividend Declaration in the United Kingdom governs the relationship between shareholders and the company and the terms on which equity is held, issued, or transferred, under the framework of the Companies Act 2006.
The legal framework governing the Dividend Declaration (UK) in United Kingdom draws on several key statutes and regulatory bodies. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Parties executing a Dividend Declaration (UK) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2006 sets the foundational requirements.
When Do You Need a Dividend Declaration (UK)?
A formal dividend declaration is required each time the directors of a UK private limited company decide to distribute profits to shareholders. The most common situations include: owner-managed companies where the director-shareholders extract profits as dividends rather than salary for tax efficiency; year-end distributions after profits have been confirmed by the accountant; interim dividends paid during the financial year as profits are generated; and special dividends following a windfall, asset sale, or other one-off event. Even if you are the sole director and shareholder of your company, you must still hold a formal board meeting, pass a resolution, and issue a dividend voucher. HMRC regularly challenges dividend payments that lack proper documentation — without a board resolution and voucher, the payments may be reclassified as salary, triggering PAYE and National Insurance liabilities plus penalties. A dividend declaration is also needed when paying dividends to multiple shareholders in proportion to their shareholdings, when issuing dividends on different classes of shares such as A shares and B shares, and when your accountant or company secretary requests formal documentation for the company's statutory books.
Parties in United Kingdom should prepare a Dividend Declaration (UK) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Dividend Declaration (UK)
A compliant UK dividend declaration comprises two linked documents. The board resolution should identify the company name and registration number, confirm the financial period to which the dividend relates, state that the directors are satisfied the company has sufficient distributable profits, set out the amount of dividend per share and the total amount to be distributed, specify the payment date, and be signed by all directors or a majority if so authorised by the articles. The dividend voucher should show the company name and registered number, the shareholder's name, the number and class of shares held, the dividend per share, the total gross dividend, and the date of payment. There is no withholding tax on UK dividends (the old tax credit system was abolished in April 2016) so no tax credit is shown. Key legal points: dividends must be paid equally per share within each class unless the articles provide otherwise; a director must not vote on a dividend in which they have a material conflict; the board resolution should be filed in the company's statutory minute book; and under section 847 of the Companies Act 2006, directors who authorise an unlawful dividend may be personally liable for repayment. If the company has a shareholders' agreement or bespoke articles, check for any restrictions on dividend payments before declaring.
Additional compliance elements for a Dividend Declaration (UK) used in United Kingdom include: Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Dividend Declaration (UK) (United Kingdom) [Legal document template]. Forms Legal. https://forms-legal.com/uk/business/corporate/uk-dividend-declaration
"Dividend Declaration (UK) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/business/corporate/uk-dividend-declaration.
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author = {{Forms Legal}},
title = {Dividend Declaration (UK) (United Kingdom)},
year = {2026},
howpublished = {\url{https://forms-legal.com/uk/business/corporate/uk-dividend-declaration}},
note = {Free legal document template. Based on Companies Act 2006}
}Also available for these jurisdictions:
Frequently Asked Questions
A dividend declaration is a formal resolution by the directors of a UK company to distribute profits to shareholders. Under the Companies Act 2006, Sections 829-853 govern the rules for distributions. A company may only pay dividends out of profits available for the purpose, meaning accumulated realised profits less accumulated realised losses (Section 830). Before declaring a dividend, directors must confirm the company has sufficient distributable reserves by reviewing the latest relevant accounts, which may be the annual accounts or specially prepared interim accounts under Section 836. Directors who authorise a dividend when the company lacks sufficient reserves may be held personally liable under Section 847. Under United Kingdom law, Companies Act 2006, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
UK dividend payments must comply with the Companies Act 2006 Part 23. Directors must first check there are adequate distributable profits as shown by relevant accounts (Section 836). The company articles of association must authorise dividend payments. The Model Articles allow directors to declare interim dividends and recommend final dividends for shareholder approval. For final dividends, an ordinary resolution at a general meeting is required, and the amount cannot exceed the directors recommendation. All shareholders of the same class must be treated equally per Section 561. For tax purposes, the company must provide shareholders with dividend vouchers showing the payment date, amount, and the shareholders name and address. Under United Kingdom law, Companies Act 2006, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Yes, directors can face significant personal liability for authorising unlawful dividends under UK law. Section 847 of the Companies Act 2006 provides that if a distribution is made unlawfully, any director who knew or had reasonable grounds for believing that the distribution contravened Part 23 is liable to repay the amount to the company. Additionally, shareholders who knew or had reasonable grounds for knowing that the distribution was unlawful must also repay it under Section 847(2). Directors duties under Section 172 and Section 174 are also relevant. In insolvency situations, liquidators can pursue directors for misfeasance under the Insolvency Act 1986 Section 212. Under United Kingdom law, Companies Act 2006, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
A Dividend Declaration (UK) does not legally require a lawyer in United Kingdom, and individuals and businesses may draft and execute the document independently. The Companies Act 2006 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified United Kingdom lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The High Court of Justice has jurisdiction over disputes arising from this type of document, and Companies House may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Dividend Declaration (UK) does not legally require a solicitor in the United Kingdom, though legal advice is recommended for complex transactions. Under UK law, individuals may draft and execute this type of document independently. The Consumer Rights Act 2015 provides consumer protections. However, Companies House, HM Revenue and Customs (HMRC), or other regulatory bodies may have specific requirements. For property transactions, the Land Registry requires qualified conveyancers under the Land Registration Act 2002. The UK GDPR and Data Protection Act 2018 impose obligations on parties handling personal data, and legal review confirms compliance. Where disputes arise, the High Court of Justice, County Court, or Employment Tribunal have jurisdiction. Forms-legal.com provides this template as a starting point — always review with a qualified UK solicitor for significant transactions involving substantial value or regulatory complexity.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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