Script DIvidend and tax treatment

Leakingtile79

Hello All,

I own some share sin a company, not UK based, which issued some shares as a dividend. This "dividend" was paid as shares, and you had the choice of either keeping thiese share rights, or selling them to get the dividend. I chose to keep the share rights, so I got a few shares extra added to my current position in this company. Because I did not receive the dividend and then invested it to buy extra shares, I am not sure about the tax treatment of this operation, as by keeping the shares (newly issued shares by the company), I am reducing my average share purchased price, and would assume I declare thiese "gains" once I sell the whole position in this company, as not gains have been materialised yet.

Could someone confirm what is the case, please?

Best Regards, and thanks in advance.

wmb194

https://forums.moneysavingexpert.com/discussion/6659106/script-dividend-and-tax-treatment

*scrip. They’re taxed the same as a normal dividend. You should have been told the value and it arises for tax on the date declared dividend payment date. You effectively buy the shares at that price and add them to your, ‘pool.’

Leakingtile79

Hello @wmb194 ,

Correct, it is a script dividend… thanks for letting me know, I thought tax treatment could be different, as in other countries this wont count towards a dividend.