Payment of Dividends
All shareholders on the register of members on the record date will receive their dividend by cheque in GBP, which will be posted by first class post on the payment date. The cheque will be accompanied by a dividend confirmation providing details of the payment. Where shares are registered in the name of joint holders the dividend cheque will be made payable and sent to the person who is first named in the register.
With effect from 6 April 2016 the notional 10% tax credit on dividends was abolished and replaced with a dividend allowance of £5,000, which was subsequently reduced to £2,000 on 6 April 2018, to £1,000 on 6 April 2023 and to £500 during the 2024/2025 tax year. Therefore, dividends in excess of £500 will be taxed according to your income band at 8.75% (basic rate), 33.75% (upper rate) and 39.35% (additional rate). You will receive a dividend confirmation for each dividend paid.
For more information on the taxing of dividends, please refer to the Government website www.gov.uk/tax-on-dividends
In the event that a dividend cheque or dividend confirmation is required to be reissued please contact Link Asset Services who will be happy to assist you. Please note that in certain circumstances a charge may be payable to cover administration expenses.