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scottish power shares
Comments
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UK Dividends automatically have a tax credit of 10% & there is no further tax to pay for a basic rate taxpayer.0
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FWIW, I've advised my mother that she does not need to do anything. As a basic rate tax payer, without any CGT considerations, she will - by default - receive the one off divident payment, and will not incur any additional taxation liabilities.
cloud_dogPersonal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
I really don't know anything about shares, so I'm sorry if this is a really stupid question but....if a basic rate taxpayer takes the dividend payout then they pay 10% tax on it. (I think)..are they not better off taking it as the capital payout and paying no tax (assuming they have not reached the CGT threshold)...?0
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The 10% tax has already been paid by the company to the government.
This "tax credit" can't be reclaimed by non-taxpayers, by charities or by your pension fund
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Thanks, Gordon.0 -
ok - i get it now.
Thanks0
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