The Imputation System is a corporation tax framework in which the company distributing dividends pays tax on those dividends, and shareholders who receive the dividends are considered to have incurred tax on those dividends as well. The UK operated an imputation system until 1999.
A historical notion referring to any dividend or other distribution from company assets to shareholders that carried a tax credit, allowing shareholders to offset this against their tax liability. This system was replaced by the dividend tax system in April 2016.
