Dividends are paid in cash via cheque or direct into your bank or building society account.
Payment direct to your bank or building society account
If you have a UK bank or building society account you can arrange to have dividends paid direct to your account.
This is the quickest and most secure way to receive your dividends. It saves waiting for the funds to clear and reduces the paper and postage we use. Using BACS (Bank Automated Clearing System) we are able to pay your dividend straight into your account on the payment date. You will receive a dividend confirmation in respect of each dividend payment (see information regarding new dividend confirmation below).
To take advantage of this service, simply download the form from Equiniti’s website, complete your details and post to the address shown on the form. Alternatively please call our shareholder helpline on 0371 384 2198*.
If you are resident outside of the UK, Equiniti (by arrangement with Citibank Europe PLC) can send dividend payments that are automatically converted into your local currency and paid direct to your bank account. For more information on this overseas payment service please contact Equiniti on +44 (0)121 415 7047 or download an application form from Equiniti’s website.
* Lines are open 8.30am to 5.30pm (UK time), Monday to Friday excluding UK bank holidays.
Income Tax changes to dividend taxation from 6 April 2018
At Summer Budget 2015, the government announced that dividend taxation would be reformed from April 2016 by replacing the Dividend Tax Credit with an annual £5,000 tax-fee dividend allowance across a shareholder’s entire portfolio. Any dividend income over the tax-free allowance was taxable at a rate dependent on a shareholder’s income tax. From 6 April 2018 the annual tax-free dividend allowance is reduced from £5,000 to £2,000. Dividends paid on shares held within an individual savings amount (ISA) remain exempt from income tax.
Registered shareholders will continue to receive a dividend confirmation detailing the date and amount of dividend paid by St. Modwen.
Up to 6 April 2016
Dividend tax vouchers were issued to shareholders including the amount of dividend, the date of payment and the tax credit amount (10%). The tax credit amount on the dividend tax voucher could be used to offset any UK income tax due on dividend income.
All tax vouchers for the six years predating the change will still need to be retained for the purpose of self-assessment.
Further information can be found on HMRC’s website www.gov.uk/tax-on-dividends.