Dividend taxation

PloughmansLunch

I'm going through my admin for the current financial year to keep up to date for next year's self assessment and am ok with most things, but wanted to check something hopefully quite simple that's confusing me - the Glencore and Coca Cola dividends are listed as 'tax exempted' separately at the bottom of my T212 spreadsheet - I assume they're not actually tax-free and that HMRC would very much like a slice of tax on them, so does anyone know if these would these be taxed at my usual dividend rates or if I need to list them as income received?

wmb194

PloughmansLunch said:

I'm going through my admin for the current financial year to keep up to date for next year's self assessment and am ok with most things, but wanted to check something hopefully quite simple that's confusing me - the Glencore and Coca Cola dividends are listed as 'tax exempted' separately at the bottom of my T212 spreadsheet - I assume they're not actually tax-free and that HMRC would very much like a slice of tax on them, so does anyone know if these would these be taxed at my usual dividend rates or if I need to list them as income received?

No, they're not tax free. They're foreign dividends - Glencore is domiciled in Jersey and Coca-Cola HBC in Switzerland. My guess is that tax status actually relates to whether or not you pay stamp duty when you buy them.

TheGreenFrog

wmb194 said:

PloughmansLunch said:

I'm going through my admin for the current financial year to keep up to date for next year's self assessment and am ok with most things, but wanted to check something hopefully quite simple that's confusing me - the Glencore and Coca Cola dividends are listed as 'tax exempted' separately at the bottom of my T212 spreadsheet - I assume they're not actually tax-free and that HMRC would very much like a slice of tax on them, so does anyone know if these would these be taxed at my usual dividend rates or if I need to list them as income received?

No, they're not tax free. They're foreign dividends - Glencore is domiciled in Jersey and Coca-Cola HBC in Switzerland. My guess is that tax status actually relates to whether or not you pay stamp duty when you buy them.

Or maybe that there is no foreign withholding on the dividends.

PloughmansLunch

That makes sense, so another box to fill in on the SA, although I do own some TRIG which is Guernsey-based / no stamp duty but is listed amongst my other UK dividends.

wmb194

TheGreenFrog said:

wmb194 said:

PloughmansLunch said:

I'm going through my admin for the current financial year to keep up to date for next year's self assessment and am ok with most things, but wanted to check something hopefully quite simple that's confusing me - the Glencore and Coca Cola dividends are listed as 'tax exempted' separately at the bottom of my T212 spreadsheet - I assume they're not actually tax-free and that HMRC would very much like a slice of tax on them, so does anyone know if these would these be taxed at my usual dividend rates or if I need to list them as income received?

No, they're not tax free. They're foreign dividends - Glencore is domiciled in Jersey and Coca-Cola HBC in Switzerland. My guess is that tax status actually relates to whether or not you pay stamp duty when you buy them.

Or maybe that there is no foreign withholding on the dividends.

Yes, you'd think there might be with Swiss company, though. Usually it's 35%.

wmb194

PloughmansLunch said:

That makes sense, so another box to fill in on the SA, although I do own some TRIG which is Guernsey-based / no stamp duty but is listed amongst my other UK dividends.

That's a foreign dividend as well. Be careful not to trust broker classifications.

PloughmansLunch

wmb194 said:

PloughmansLunch said:

That makes sense, so another box to fill in on the SA, although I do own some TRIG which is Guernsey-based / no stamp duty but is listed amongst my other UK dividends.

That's a foreign dividend as well. Be careful not to trust broker classifications.

Thanks, that's a great help and clears that up. As long as I make sure I split things into appropriate sections on my master spreadsheet it shouldn't be too much of a faff to complete my SA in a couple of months.

TheGreenFrog

PloughmansLunch said:

wmb194 said:

PloughmansLunch said:

That makes sense, so another box to fill in on the SA, although I do own some TRIG which is Guernsey-based / no stamp duty but is listed amongst my other UK dividends.

That's a foreign dividend as well. Be careful not to trust broker classifications.

Thanks, that's a great help and clears that up. As long as I make sure I split things into appropriate sections on my master spreadsheet it shouldn't be too much of a faff to complete my SA in a couple of months.

It becomes a bit more of a faff when there has been foreign withholding as you do not necessarily get full credit for the withholding.