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Glossary   >   F   >   "Franked income" Definition            Franked income Dividends, paid by UK companies to other companies (for example, investment trusts), with a tax credit reflecting the fact that the company which has paid the dividend has done so out of post tax profits. Therefore the "franked income" will be free of further tax to the receiving company. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Franked income - Dividends, paid by UK companies to other companies (for example, investment trusts), with a tax credit reflecting the fact that the company which has paid the dividend has done so out of post tax profits. Therefore the "franked income" will be free of further tax to the receiving company.