Good news for British shareholders.
The UK government is extending a tax credit to dividends paid by non-UK resident companies.
Previously the notional tax credit (that prevents you needing to pay basic rate tax on dividends, and saves hassle on your tax return) was only available for companies based in the UK. This new change means it is also available on non-UK companies too. It’s particularly useful if you hold ETFs such as the iShares index tracking shares, which are based in Ireland for tax purposes. Now there will be less admin/hassle, and less tax too.
There are a few exclusions: only up to 5000 pounds/year; only a basic rate tax credit; only if you own less than 10% of the company. Still, for many small shareholders, esp. expats, this is great news!
Posted: March 16th, 2007 under Finance & Economics.
Related articles
- Comments and Pessimism (January 3rd, 2009)
- Response to Obblogatory… (January 2nd, 2009)
- Taiwan’s economy… (December 7th, 2008)
- Economy, Property, Freedom, Weather (November 29th, 2008)
- China Post struggles against reality. (November 23rd, 2008)