Dividends from UK companies/tax return

ManicMum

Hello

totally organised as usual with tax return -not!!

Have got most of it done so not too bad. Just a query. I have some Standard Life shares. I was going to enter the dividend amount but clicked on the information button and said that an exception was if you are in a Share Incentive Plan whereby you buy more shares with the dividends. Well I am in the Standard Life scheme to do that so does that mean I don't enter anything?

Also what about the tax credit? Where does that go? Does it go anywhere?

Sorry, this part really confusing me.

thanks for your help.:beer:

DizzyBlonde

My understanding is that if you receive an actual dividend e.g. a cheque or payment into your bank from profit on your shares each year you need to put this on your tax return. If you have opted to buy more shares (accumulate) with any profits you don't need to record this.

When you come to sell the shares at some point in the future you may be liable for Capital Gains Tax if you profit by over £10k (depending on rates applicable at the time) and this would have to be recorded on your return for the tax year in which this happens. There should be some explanatory notes on the reverse of your annual tax credit notification.