Franked Investment Income refers to dividends and other distributions from UK companies that, under the imputation system of taxation, were subject to corporation tax only once and exempt from further tax when received by other companies.
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.
