Santander Shares and my tax return

Denniscat

Hiya, just a wee query for my tax return
I have had Abbey National shares, now Santander for years, I used to take the dividends each quarter but now i choose to reinvest this money in buying more santander shares each quarter, this happens automatically so I don't see the cash, it just goes straight to buy a share or 2, we are ony talking £5.00 to £8.00 per quarter.
What do I need to put on my tax return as dividends.. if anything. Thanks in advance for your help

bigadaj

The dividends are income so need to be reported as such on your tax return.

Do you get charged for this transaction as this could make it very inefficient, do you hold these on a platform or in paper form?

Denniscat

Thanks for your help, effectively they are paper held directly with Santander, I think I will go back to taking the dividends in future rather than reinvesting in shares, best wishes

ColdIron

The tax treatment of the dividends you receive is the same regardless of whether you take them as a cash payment or use them to purchase more shares

jennyjj

Denniscat wrote: »

Hiya, just a wee query for my tax return
I have had Abbey National shares, now Santander for years, I used to take the dividends each quarter but now i choose to reinvest this money in buying more santander shares each quarter, this happens automatically so I don't see the cash, it just goes straight to buy a share or 2, we are ony talking £5.00 to £8.00 per quarter.
What do I need to put on my tax return as dividends.. if anything. Thanks in advance for your help

Sorry to not add a reply to the original question, but all we Santander shareholders should know that there are really nasty and silly obligations on most of us to fill in Spanish tax forms in Spanish and return those forms to Madrid in paper form each January, or at least upon selling or transering any Santander Shares.
https://www.google.co.uk/search?q=santander+spanish+tax+form&rlz=1C1CHBF_enGB696GB696&oq=santander+spanish+tax+form&aqs=chrome..69i57.13463j0j8&sourceid=chrome&ie=UTF-8
or tiny url . com/ybyfakj3

Probably very few of us do, and probably nothing will come of it, but the problem does exist.

caper7

jennyjj wrote: »

Sorry to not add a reply to the original question, but all we Santander shareholders should know that there are really nasty and silly obligations on most of us to fill in Spanish tax forms in Spanish and return those forms to Madrid in paper form each January, or at least upon selling or transering any Santander Shares.
https://www.google.co.uk/search?q=santander+spanish+tax+form&rlz=1C1CHBF_enGB696GB696&oq=santander+spanish+tax+form&aqs=chrome..69i57.13463j0j8&sourceid=chrome&ie=UTF-8
or tiny url . com/ybyfakj3

Probably very few of us do, and probably nothing will come of it, but the problem does exist.

This is the only reason I haven't sold the damn things!
I also hear you have to deliver the form in person or use an agent of some sort, not sure if that's true, but if so the cost of selling would be far too much for me to stomach.

However, the recent rights issue has actually put all/most of us in that situation anyway, apparently.
There was an article in the Telegraph about it, the journalist stated he wasn't going to bother submitting the tax return.
I am usually an absolute stickler for honesty and playing by the rules, but if I've understood correctly, there is a double taxation aggreament between the UK and Spain, so most of the 1.4 million UK Santander shareholders don't actually owe any Spanish tax.
We would be filling in a tax return to tell them we owe nothing, and if this needing an agent to hand deliver the return business is true, the cost would wipe out any rights issue money for most I would have thought.

I would be interested to know what others are doing, especially since if like me, you got your shares on the back of Alliance& Leicester demutualisation, the sums are small. Too small to warrant this level of nonsense.

[Deleted User]

Hi,

this from GOV.UK,



4. Paying tax on foreign income

You usually need to fill in a Self Assessment tax return if you’re a UK resident with foreign income or capital gains. But there’s some foreign income that’s taxed differently.
You don’t need to fill in a tax return if your only foreign income is dividends under £300 in total and you don’t have anything else to report.

caper7

Unless I am misunderstanding you, my post wasn't about filling in UK tax returns, it was about having to fill in Spanish ones as well when selling/transfering shares.

Oops, perhaps you were responding to the original post. Apologies.

pearl123

Bumping an old thread. My elderly mother has about 100 shares value £532.00 as of November 2017. Is she were to sell them would in be a headache re taxes.

Reaper

I can't offer any advice. After struggling through the tax implications last year I decided to sell all my Santander shares before it went through for the easy life. I was surprised so few others decided to do the same.

ColdIron

pearl123 wrote: »

Bumping an old thread. My elderly mother has about 100 shares value £532.00 as of November 2017. Is she were to sell them would in be a headache re taxes.

Hard to say without knowing what they cost. You are liable to Capital Gains Tax on the gain, basically the difference between the cost of acquisition and the sale value. You have an £11,300 allowance so if this covers your gain there is no tax to pay

https://www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax/capital-gains-tax-rates-and-annual-tax-free-allowances