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Offshore Investment Company Dividends
barak
Posts: 1,258 Forumite
in Cutting tax
With a UK share you have a "Tax Credit" of [say] £10.00 and a "Dividend Payable" of £90.00 - and can no longer recover the £10.00 Tax Credit within an ISA.
With an Offshore Investment Company you receive [say] "Gross Dividend" £200.00 "Jersey Income Tax" £0.00 "Net Amount of Dividend" £200.00 - all of which can be credited to the ISA.
Is that Net Amount of Dividend treated as though it has a UK Tax Credit attached?
If so, it would seem to imply that no UK tax would be payable if held outside the ISA - and if not, that such funds are best held within an ISA.
Am I missing something?
With an Offshore Investment Company you receive [say] "Gross Dividend" £200.00 "Jersey Income Tax" £0.00 "Net Amount of Dividend" £200.00 - all of which can be credited to the ISA.
Is that Net Amount of Dividend treated as though it has a UK Tax Credit attached?
If so, it would seem to imply that no UK tax would be payable if held outside the ISA - and if not, that such funds are best held within an ISA.
Am I missing something?
".....where it is corrupt, purge it....."
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