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santander scrip dividends

A client has had in 2010/11 £7.47! of scrip dividends, the dividend money went into a santander shareholder account and he was given when he had enough money shares probably 1 to the value of £7.47.  I have no paperwork.  in 2011/2012 i shaw a share acquisition confirmation statement shown 3 shares given from the account, these shares were valued at £21.72, again no spanish witholding tax shown.  Where does the 7.47 go on the income tax return, is there spanish witholding tax.  Or because it is so little, just put the £7.47 in the foreign shares with no withholding tax .  Seems a lot of effort for so little income

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By ACDWebb
25th Jul 2011 09:09

Look

HERE

They are not taxable

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26th Jul 2011 08:24

santander scrip dividends

Thanks i have looked all through the santander web site and printed a fair bit off, why are these treated differently than uk scrip dividends.

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26th Jul 2011 16:25

Bonus

they are effectively bonus shares rather than scrip issues, hence no tax consequences

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By r01
19th Dec 2012 18:48

Witholding tax on Santander Shares

Santander shares were so simple when they were Abbey but now are the most infuriating in my portfolio as they keep changing process and Equiniti employees seem as much in the dark as anyone from one year to the next.  I've been in the Scrip Div scheme since it's inception and received consolidated tax vouchers up to and including the record date 31st July 2011 (paid 10th Aug 2011). On that record I have the following:-

Dividend Rate:- £0.1117,  Shareholding:- 343,  Spanish Witholding Tax:- £7.67,  Dividend Paid:- £32.70

So contrary to other's answers I can confirm there definitely was witholding tax on my Scrip Dividend shares up to and including 10th Aug 2011.  Think about it, it is still a gain - you just receive shares instead of cash.

I queried Equinity on what the hell was going on (the reason I made this search & came across this article), as I had received no tax vouchers since for the remaining 2011-2012 div payments (there are four per year).  The new individual Scrip statements I've received just list the total shareholding, no of new shares received, cash balance left over after buying the shares (which I'm told does not attract tax as I don't receive it - it just sits in my shareholder bank account - which does accrue tax & for which I receive an annual inland revenue tax statement) and that's about all.  The operator at Equiniti told me there had never been withholding tax on scrip dividend as the respondents here seem to think but had to accept he was wrong when I made him look at my record.  According to him Santander can elect whether to take withholding tax or not annually and have elected not to do so from the last statement I have, so from that date there is no witholding tax, so I have to declare it as untaxed dividends from overseas from this point on. I had to persuade him I'm not psychic and still needed the actual monetary figure of the dividend for my tax return as it simply wasn't good enough to tell my friend the tax man that I received a certain number of shares plus a small withheld cash sum. 

Best to ring equinity and get the full figures as your client may actually have four of these.

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By egg2
04th Jul 2014 12:48

tax free scrip dividends

I too found the Santander website confusing.

If you want to receive scrip dividends without paying higher rate or additional rate tax on their value, European Assets Trust NV has been operating a scrip dividend scheme for many years without giving rise to any problems.   Their shares yield about 6%, their policy being to pay out by way of dividend each year a total sum equal to 6% of the NAV of the Fund at the end of the previous year, by three equal instalments.   My original shares have risen in value ten times since I bought them when they were first issued in 1983;  and my holding has increased in geometrical progression.

Now that Royal Dutch Shell have stopped their scrip dividend scheme, which worked on the same principle free of higher rate and additional rate tax, can anyone recommend any other company (it would have to be incorporated outside the UK) that operates a simple tax free scrip dividend scheme?   Of course the bookkeeping is a little more complicated, and capital gains tax is payable if and when the shares are sold;  but the freedom from higher rate and additional rate income tax is worth having..

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