Form R27

John_Pierpoint

Santander share dividends are a nightmare. They are paid in Spain in Euro and there is a handy little tax arrangement where the company and /or the investor can opt for warrants to be paid in more shares. What actually happens is the company sell the extra shares and under Spanish tax this gives the investor a better return than simply paying expensive Spanish income tax on a simple dividend.. The R27 is not really suitable for these complexities.
Under British tax law such dodges are still "income" with a very small margin to allow for the shares going up or down at the time.
The Santander web site tries to explain the various options from a UK perspective.

In your position, seeing as the numbers are so small, I would be tempted to do my best, bung down some figure; as though Santander shares were British and cross my fingers.
Your alternative is to show your calculations for the Santander payments and calculate how much more (if any) UK tax is owing in the comments box
or
Ask for the full self assessment forms and end up returning a booklet like a TV listings magazine.

Whose fault is it that Santander is Spanish and UK and Spain have different tax rules and a sort of heads I win and tails you lose arrangement for the hapless investor?

[When Santander took over Abbey a new box appeared on the self assessment form explaining that for small foreign dividends they could be returned in the following fields. Such an entry would most likely mean paying slightly too much tax BUT would involve a whole lot less calculation and flaffing about. I don't know if these extra statutory arrangements still exist]

Here is a thread about the joys of foreign income:
https://forums.moneysavingexpert.com/discussion/comment/53681357#Comment_53681357

John.

PS I see that the new R27 incorporates "clarification" (I would call it "mission creep") laying claim to the capital gains tax during the period of administration.
Traditionally the executor can assign assets to the beneficiaries and let the beneficiaries sell the assets and pay CGT (if any) as a personal liability on their own tax returns. (Thus having several beneficiaries creates several 10,600 nil rate bands to be set against the capital gain - this can be a serious issue if there is a house to sell).