Defined by section 1000 of the Corporation Tax Act 2010 (for accounting periods ending on or after 1 April 2010). As well as a dividend, it includes other value moving to a shareholder in respect of shares in the company and interest in certain circumstances. A distribution is not deductible for corporation tax purposes.

Matters that are specifically excluded from being distributions for tax purposes and matters that are exempt distributions are defined in Part 23 of the CTA 2010.

For further discussion about distributions, see Practice note, Dividends: tax.