Santander Shares

DotMatrix

Me and my sister have inherited some Santander shares. We intend to have the shares transferred into our names on a 50/50 split basis.

Does anyone know if we are liable to have to pay any tax with reagards to the transfer. Also the dividends issued from Santander are subject to witholding tax at around 19%. Would this be standard based on the fact the parent company is Spanish based. I'm not sure if I could change that.

Thanks in advance.

barak

Briefly -
[1] The executor can transfer the shares without any expense by sending Stock Transfer Forms to the registrar with supporting documents.

[2] You can't avoid the Spanish withholding tax of 19% on dividends, but on a tax return you can complete the Foreign Pages showing the dividends as Foreign Income and claim Foreign Tax relief. The Foreign pages can seem quite confusing!

Edit: On reflection I seem to recall that there is a concession for small holdings where there is no need to complete the Foreign Pages. This was to assist the many Abbey shareholders who received Santander shares. Needs further research!

zildjian

I just inherited shares and changed them into my name. It didnt cost me a penny other than the postage to send out the relevant forms.

Im pretty sure you cant get round the 19% tax, a relative has iberdrola and their based in spain too. Although im not aswell clued up on that side of things as perhaps other people on here.

barak

barak wrote: »

Edit: On reflection I seem to recall that there is a concession for small holdings where there is no need to complete the Foreign Pages. This was to assist the many Abbey shareholders who received Santander shares. Needs further research!

This is what I was thinking of from the tax return guide -

5. Foreign
If your only foreign income was:
• untaxed foreign interest received (up to £2,000), and/or
• taxed foreign dividends (up to £300)
you may enter them in box 2 (for untaxed foreign interest received) or box 5
(for taxed foreign dividends) on page TR 3 of your tax return. In addition
please read the notes for box 2 (on page TRG 9 for foreign interest)
and for box 5 (on page TRG 10 for foreign dividends).
Otherwise, the Foreign pages should be completed if you received income
from any of the following overseas sources:
• interest and income from overseas savings
• dividends from foreign companies
• overseas pensions, social security benefits and royalties
• income from land and property abroad (but excluding furnished holiday
letting income from properties in the EEA)
• benefits from a UK trust that has either been, or has received income from
an overseas trust
• gains on foreign life insurance policies.

http://www.hmrc.gov.uk/worksheets/sa150.pdf

DotMatrix

Thanks for your help everyone.