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1 The process of handing over to the beneficiaries their entitlements under a deceased person's will or on his intestacy.

2 Any payment made by a company to a shareholder. There are two separate types of distribution, either of which can be in cash or in kind. An income distribution is a distribution during the life of a company and is made out of profits that the company has generated up to the time of the distribution. A capital distribution is a payment made on the winding up of a company and may include repayment of the company's share capital. An income distribution to an individual is subjected to income tax; a capital distribution received by an individual is subjected to capital gains tax (with rare exceptions).

Subjects: Law.

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