The taxation of dividends was radically altered with effect for 2016/17 onwards. The dividend tax credit was abolished and dividend income tax rates (see E1.101E) were adjusted accordingly1.
Tax credits prior to 2016/17
Subject to the exceptions listed below, a UK resident or an 'eligible non-UK resident' who receives a qualifying distribution made by a UK resident company is entitled to a tax credit of 100/90 of the amount or value of the distribution2.
An 'eligible non-UK resident' is an individual who at any time in the tax year in which a qualifying distribution is received falls into one of the categories
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