Retained profits

If the entity retains a portion of the profits, the portion retained by the entity (subject to the percentage of the entity attributed to the stakeholder) is to be added to the actual amount received by the attributable stakeholder and deducted from the attributable amount. The balance is treated as a gift by the attributable stakeholder. Retained profits from previous years' trading paid to attributable stakeholders (only) are disregarded when assessing the income of the attributable stakeholder.

Making adjustments for any non-allowable deduction

Where a company profit-&-loss statement is adjusted to remove non-allowable deductions, the attribution amounts calculated for the attributable stakeholders in the company will vary from the actual amounts paid.