Standard Life - 73p Cash Payment But .......

moggy1968

I only received an email today from SL advising of the 73p per share payout - nothing previously. I have not received a letter or form as my registered address (and home) is in The Republic of Ireland but I work in the UK and only travel home once per month.
Does this mean I have missed the deadline to choose whether to receive the B or C option?

I am a higher rate tax payer in the UK but as my registered address with SL is abroad how will that affect my tax liability? I'm guessing from reading (most) of this thread that I would be better off taking the Capital option (B) as I have no other CGT to declare?

I'm going home this weekend so I suppose I'll find an SL envelope waiting for me...

Thanks

bowlhead99

moggy1968 wrote: »

I only received an email today from SL advising of the 73p per share payout - nothing previously. I have not received a letter or form as my registered address (and home) is in The Republic of Ireland but I work in the UK and only travel home once per month.
Does this mean I have missed the deadline to choose whether to receive the B or C option?

Yes, that's happened more than a week ago, the conversions have taken place and you are now the proud owner of new ordinary shares which are trading on the market, and some C shares. You'll get your dividend on the C shares shortly.

I am a higher rate tax payer in the UK but as my registered address with SL is abroad how will that affect my tax liability?

Your registered address with SL does not affect your tax liability. However they will use the fact that they thought you were living in Ireland as the basis for giving you the C shares as your default option. If they had known you were living in the UK they would also have given you the C shares as your default option. If your address was in certain other countries they would have given you the B ones.

Your tax liability depends where you are resident. If you are UK resident in the UK and higher rate payer for 2014/15 you will be paying tax on your dividends at the normal dividend rate, effectively 25% on the cash you receive. If you are also considered Ireland resident for calendar 2015 (which depends on a variety of factors), Ireland might want to tax you also.

But if you are satisfied that you are only UK resident then receiving dividend income is pretty straightforward. You get the cash, do what you like with it, and tell HMRC by next January 31 on a tax return that you owe them tax for the 14/15 tax year, which you pay them.

I'm guessing from reading (most) of this thread that I would be better off taking the Capital option (B) as I have no other CGT to declare?

Correct, you would have been better off taking the capital option as you would have saved paying 25% tax on the dividends you receive. You could have had it for free. It's not an option for you any more though.

iQueen

Thank you all for an enlightening thread!

I got my shares by having a low-cost endowment at de-mutualisation (but that's another story! :eek:) I know [STRIKE]nothing[/STRIKE] a little more after getting a letter about consolidation and checking into this thread! :T

SL are the only shares I have, so after I get my cash and divi, I shall watch the price and probably sell.

moggy1968

bowlhead99 wrote: »

Yes, that's happened more than a week ago, the conversions have taken place and you are now the proud owner of new ordinary shares which are trading on the market, and some C shares. You'll get your dividend on the C shares shortly.

Your registered address with SL does not affect your tax liability. However they will use the fact that they thought you were living in Ireland as the basis for giving you the C shares as your default option. If they had known you were living in the UK they would also have given you the C shares as your default option. If your address was in certain other countries they would have given you the B ones.

Your tax liability depends where you are resident. If you are UK resident in the UK and higher rate payer for 2014/15 you will be paying tax on your dividends at the normal dividend rate, effectively 25% on the cash you receive. If you are also considered Ireland resident for calendar 2015 (which depends on a variety of factors), Ireland might want to tax you also.

But if you are satisfied that you are only UK resident then receiving dividend income is pretty straightforward. You get the cash, do what you like with it, and tell HMRC by next January 31 on a tax return that you owe them tax for the 14/15 tax year, which you pay them.


Correct, you would have been better off taking the capital option as you would have saved paying 25% tax on the dividends you receive. You could have had it for free. It's not an option for you any more though.

Thanks Bowlhead99

At least I understood the basics of your previous posts...!

So I've lost 25% of my free money - bummer. At least I think I'm safe from being taxed twice as the dividends go into a UK account...

Spidernick

moggy1968 wrote: »

Thanks Bowlhead99

At least I understood the basics of your previous posts...!

So I've lost 25% of my free money - bummer. At least I think I'm safe from being taxed twice as the dividends go into a UK account...

Without wishing to go into the ins and outs, that will depend very much on the wording of the UK/Ireland tax treaty and where you are treaty resident!

Any capital gain would also most likely have been taxable in Ireland rather than the UK from what you are saying, so whether you are worse off or not may very well depend on Irish CGT rules, which alas I am not an expert in.

bowlhead99

moggy1968 wrote: »

Thanks Bowlhead99

At least I understood the basics of your previous posts...!

So I've lost 25% of my free money - bummer. At least I think I'm safe from being taxed twice as the dividends go into a UK account...

Probably best to research your tax position rather than assume "what account your dividends go into" would have any bearing whatsoever on whether various world governments would want to tax you on investment income, especially as you are someone who spends time in multiple countries and have a home in the country you spend less of your time in.

molerat

Money in the bank dated 1st April.

bigmondy

Cheque dropped through the door today.

:beer:

torbrex

Postie was late today but cheque arrived

pinklady21

Apologies in advance if this is a really stupid question!

I have been looking at the share portal for my S/L holding today, and I am not sure I am understanding fully what it is telling me.
Can anyone more adept at this than me, help clarify?

Pre-Consolidation I had 1450 shares.
Post Consolidation 1186.
So far so good, this makes sense.

What isn't making sense is the dividend.
1/4/15 shareholding 1450 rate 0.73p Amount £1058.50
This I understand - it is the return of value payment, which I thought was 73p per share.

The bit I don't quite get is the next line which is
1/4/15 shareholding .3636 rate 4.6537 Amount 1.69.

The total paid into the bank today is both amounts ie £1060.19
Which I assume is the full amount due without any tax deducted, as I requested B shares to be more tax efficient.
I know it is only 1.69, but would be interested to know what it is and why it is shown separately.
Thanks!