Alliance & Leicester Share....

Bazn

i'l just get dividends net of tax

ad44downey

Spanish tax or UK tax? It could be complicated if you have to fill out a tax return.

del1001

ad44downey wrote: »

Spanish tax or UK tax? It could be complicated if you have to fill out a tax return.

There's nothing complicated about it, I hold some of the original Abbey National shares, which became Santander, dividends are paid straight into my bank account net of tax.

itsnothing

del1001 do you know if the process to close a share account with santander is easy enough if i wasn't happy with my return?

Farway

FWIW I own 250 A & L shares from privatisation, I am also intending selling if rally next week

Due to tax with an inheritance & CGT I will need tax form, and adding Spanish ones in is one move too many for me, now my privatisation B & B have added to my list of complications, for me enough is enough

del1001

itsnothing wrote: »

del1001 do you know if the process to close a share account with santander is easy enough if i wasn't happy with my return?

It is easy if you have a branch of Abbey (or A&L soon) close by, they will provide you with the form to fill in and process it for you, not sure of the cost though.

del1001

Farway wrote: »

FWIW I own 250 A & L shares from privatisation, I am also intending selling if rally next week

I can't say I blame you, it is getting a bit messy.
To further complicate matters for me, my A&L shares are in an ISA with Fidelity, I have the choice of selling or converting to Santander shares, I may also sell if the price goes up next week, we will see..

Bazn

del1001 wrote: »

There's nothing complicated about it, I hold some of the original Abbey National shares, which became Santander, dividends are paid straight into my bank account net of tax.

good i'm glad someone is on my wavelength!

MarkyMarkD

The amount you receive is net of Spanish, not UK, tax.

Spanish dividends are subject to UK income tax.

Therefore if you simply receive the dividends, net of Spanish tax, and don't disclose them to HMRC, you are failing to pay the full amount of tax due.

Now, the amount may be fairly trivial, because the Spanish tax (at 18%) can be offset against the UK tax (at 20% for most, but not all, people). But it's still a source of income which you should be declaring on your tax return or directly to HMRC, if you don't complete a tax return.

250 A&L shares is worth 83 Santander shares (and a bit of change), and Santander only pay around £0.40 per share (net) in dividends per year, so we are talking about around £33 in dividends (net) - about £40 gross. Not much to get excited about!

Those who have more Santander shares than this - as former Abbey shareholders probably will - might have bigger figures to worry about and therefore a bigger issue with regard to tax compliance.

cheerfulcat

MarkyMarkD wrote: »

Now, the amount may be fairly trivial, because the Spanish tax (at 18%) can be offset against the UK tax (at 20% for most, but not all, people). But it's still a source of income which you should be declaring on your tax return or directly to HMRC, if you don't complete a tax return.
.

UK tax rate ( BRT payer ) on dividend income is 10% though, so paying at 18% disadvantages a UK taxpayer.

I am still trying to discover what the Spanish CGT position is for UK holders of Santander shares, having read somewhere that one is expected to notify the Spanish tax authorities of any sales of Santanders.

EDIT - found this while Googling; if it's true ( will check with accountant ) then I think I'll be selling before the takeover.