distribution
n. 1. The handing over to the beneficiaries of their entitlements under a deceased person’s will or on his intestacy. 2. Any payment made by a company to a shareholder. There are two separate types of company distribution. An income distribution is a distribution during the life of a company and is made out of profits that the company has generated up to the time of the distribution. A capital distribution is a payment made on the winding up of a company or when a company repays some of its share capital. An income distribution to an individual is subjected to income tax; a capital distribution received by an individual is subjected to capital gains tax (unless brought within the income tax charge by transaction in securities legislation: Income Tax Act 2007 s 684). A distribution can be in cash or in kind. |