Company issued share scheme, tax question

AndyJH7

(if this post is in the wrong place can someone please advise me)
Hi
I took up a company share option scheme in about 1998 at the newspaper where i worked (United Business Media - UBM). I put £60 a month into it for a while.
Then I had the shares when they were offered at the end of this period - 2 or 3 years i cant remember.
Since then they have been re-issued so i now have 115 UBM shares and another 111 in a company called ICAP.

I have never cashed in any of the dividend cheques that were sent over the years.

I have recently contacted both companies who have agreed to post out replacement cheques for the sum of the dividends.
I dont have up to date share certificates so Im having to pay about £70 to have a new one of these for each companies issued.

I do some freelance work which I have to declare and pay tax on as an income.

Does anyone know where i stand in having to declare any of the shares or dividends for tax purposes ?? Im not sure of what i paid for them in the first place to be honest.

Any help much appreciated.

xylophone

Have you ever been a higher rate tax payer during the time you have owned these shares?

AndyJH7

No - always just a standard rate tax payer I'm afraid.

AndyJH7

Does anyone else have any advice on this subject.
Im getting them all paid to my bank - but as well as my full time job i also do some freelance work that i declare - i was wondering if i have to declare or pay tax on anything from these old shares or dividends.
Im only ever in the basic tax bracket.

Mr.Generous

dividend income is capital gains, you will be unlikely to breach the allowance and if you do the tax rate is lower than income tax. Tax return has a space for divi income.

LHW99

I think dividend payments are taxed as income, and usually have a tax credit attached (ie paid net).
Unless you sell the shares you shouldn't need to calculate capital gains.
You could just write to your tax office explaining what has happened and provide them with details of the payment and tax credits associated and they will let you know if there's anything extra to pay.

Kynthia

Try the Cutting Tax board as I think there's a tax free limit of dividend income before paying tax, but it's likely you have to declare all the income received. The tax experts will know more.

bigadaj

It would be helpful if you could post actual values.

A rough guide to the shares you currently hold suggests they are worth around £1k or a bit more, this would suggest dividend income of around £40 per year or less. This comes with a tax credit so no more tax to pay as a standard rate tax taxpayer, you also have a cgt allowance of £11k ish so well below that and nothing to worry about if my ask,potions are broadly correct.

AndyJH7

thanks for the advice - much appreciated