Interest or dividends on stocks and shares do not become ‘income’ until they become due and payable. No apportionment of interest which actually becomes due and payable is made over the period in respect of which it is paid. Anti-avoidance provisions, known as the accrued income scheme, were introduced to prevent the avoidance of tax by broadly purchasing shares or securities just after a dividend or interest has been paid and selling them just before a dividend or interest becomes due, or by sale and repurchase around a dividend or interest payment which effectively turned an income receipt into a capital receipt.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.