Tesco dividend.

jimpwarsop

Hi,

If I buy Tesco tomorrow will I get the special dividend ?

Record date 12 Feb

Ex div 15 Feb

Payment date 25 Feb

Thanks in anticipation.

maxsteam

If you purchase a stock before (but not on) its ex-dividend date, you get the dividend. It should not be a major factor in timing the purchase as the share price will move accordingly to account for whether or not the dividend is included. Normally the record date comes after the ex-dividend date and is the day on which the registrar checks the records. Maybe the records will be checked on Friday evening. Maybe it's another Tesco fiddle. If you do decide to buy this week, please let the forum know whether you do indeed get the dividend.

[Deleted User]

jimpwarsop said:

Hi,

If I buy Tesco tomorrow will I get the special dividend ?

Record date 12 Feb

Ex div 15 Feb

Payment date 25 Feb

Thanks in anticipation.

but on 3rd Feb you said:

3 February at 12:59AM

LobsterMemory said:

« hide previous quotes

jimpwarsop said:

I hold Tesco and there will be a tax cost. Is the ex-dividend date(15/2/2021) the effective date for tax purposes?

Cheers.

No, it's the payment date 

Thanks, I'll be shifting them in good time.  My concern was that it might be earlier.

So,

did you 'shift' them and now want to 'shift' them back?

jimpwarsop

[Deleted User] said:

jimpwarsop said:

Hi,

If I buy Tesco tomorrow will I get the special dividend ?

Record date 12 Feb

Ex div 15 Feb

Payment date 25 Feb

Thanks in anticipation.

but on 3rd Feb you said:

3 February at 12:59AM

LobsterMemory said:

« hide previous quotes

jimpwarsop said:

I hold Tesco and there will be a tax cost. Is the ex-dividend date(15/2/2021) the effective date for tax purposes?

Cheers.

No, it's the payment date 

Thanks, I'll be shifting them in good time.  My concern was that it might be earlier.

So,

did you 'shift' them and now want to 'shift' them back?

Yes I sold on Wednesday intending to buy back into an ISA, the funds clear today.

Galapagos12

Hi,
Should the special dividend paid by Tesco in February be treated as a Return on Capital which would be subject to Capital Gains Tax or should it be treated as a normal dividend payment ?  The difference in tax due on my self assessment tax return is quite significant depending on whether I should opt for the former or the latter.
Many thanks for your advise.

HansOndabush

Galapagos12 said:

Hi,
Should the special dividend paid by Tesco in February be treated as a Return on Capital which would be subject to Capital Gains Tax or should it be treated as a normal dividend payment ?  The difference in tax due on my self assessment tax return is quite significant depending on whether I should opt for the former or the latter.
Many thanks for your advise.

"The dividend was paid to shareholders on 26 February. Investors should note that it will be treated as income for tax purposes and not as a return of capital, and may need to seek tax advice depending on their circumstances"

eskbanker

https://www.tescoplc.com/media/756913/shareholder-circular-incorporating-the-notice-of-general-meeting.pdf explains taxation considerations from page 18 onwards.