New dividend disclosures for close company directors explained

CREATED BY HELEN BEAUMONT Published: 29/07/2026 @ 09:00AM #SA102 #dividenddisclosures #closecompany #dividends #directors #newrules

Dividend disclosures on the new SA102 boxes can feel fiddly at first, but the key point is simple. If the person is a director of one close company, the reporting follows that company, not every company in which they happen to own shares ...

What are the latest changes in dividend disclosures for close company directors?

Dividend disclosures in the new SA102 boxes are intended to capture information about a director's relationship with a close company, not every shareholding they may hold elsewhere. That distinction matters, particularly where a person is a director of one company but only a shareholder in another.

The tax return requires additional details if the individual served
as a director of a close company during the tax year!

The idea behind HMRC dividend reporting is fairly straightforward: HMRC wants to see the dividends the company actually paid, together with the person's interest in that company.That means close company dividends received from another company are not automatically pulled into the new director boxes just because the person owns shares in that company.

If a person is only a director of B Ltd and merely a shareholder in A Ltd, the dividend disclosure question points to B Ltd, not A Ltd. The director-shareholder connection has to be with the company being reported.

This is where a careful reading of the rules helps!

The new disclosure requirement is tied to the company for which the individual was a director. If that company is a close company, the return asks for the amount of dividends received from it and the percentage of share capital held in it. Dividend disclosures are therefore company-specific, not a general summary of all personal shareholdings.

For many, the practical approach will be to consider the directorship first, then determine whether that company is close. If it is, the relevant boxes should reflect that company only. So, if the person received dividends from A Ltd but was not a director of A Ltd, those dividends would not normally belong in the new SA102 director boxes simply because A Ltd is connected elsewhere in the group structure.

That approach also aligns with HMRC's
dividend reporting logic!

The regime doesn't require reporting dividends from all group companies. Instead, it focuses on the close company associated with the directorship, so dividend disclosures should align with the relevant appointment.

The shareholding question follows the same pattern. The percentage entered should relate to the share capital of the close company in which the person was a director and should be calculated by reference to the nominal value, not merely the number of shares.

That detail may sound technical, but it matters when different classes of shares carry different nominal amounts. Dividend disclosures can look simple on the surface, yet the calculation must be grounded in the appropriate share capital measure.

In short, a director shareholder needs to report the dividends and holdings that relate to the company they actually direct.

If the individual only directed B Ltd, the boxes should normally relate to B Ltd, not to A Ltd, simply because A Ltd paid dividends. That is the cleanest reading of the new Dividend Disclosures Rules.

This keeps the self-assessment tax return aligned with the intent behind the change.

Until next time ...

HELEN BEAUMONT
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About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist. Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance. When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.

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