On 23 June 2026, HMRC published a consultation titled Modernising the taxation of distributions and repayments of capital from companies.

On 23 June 2026, HMRC published a consultation titled Modernising the taxation of distributions and repayments of capital from companies.

The consultation proposes fundamental reform to the rules governing how payments from companies to their shareholders are taxed. Although the primary focus is on individual shareholders and trusts, the consultation will also impact corporates. It has the potential to be one of the more consequential consultations on UK tax law in decades.

In this episode of our Tax Focus podcast, the first of a mini-series, Maddy Gowlett and Hannah Manning discuss the background to the consultation, the principles involved, and some of the possible practical implications.