General guidance to individuals who are UK-resident shareholders in Barclays PLC.
The following information is intended to provide general guidance to individuals who are UK-resident shareholders in Barclays PLC, and does not constitute professional advice. Shareholders, particularly those who are not resident in the UK, should take advice from their professional adviser if in doubt as to their personal tax position.
Taxation of dividend income from 6 April 2016
From 6 April 2016 the dividend tax credit was abolished. Instead, investors have a tax free dividend income allowance of £5,000. Dividend income above the tax free allowance is subject to tax at 7.5% for basic rate taxpayers, 32.5% for higher rate tax payers and 38.1% for additional rate taxpayers. You are responsible for declaring any taxable dividend income on your self assessment tax return. To understand how you may be affected by the changes and for further information visit the HMRC website:
Taxation of dividend income up to 5 April 2016
For the tax years ending 5 April 2015 and 5 April 2016, dividends from Barclays PLC carry a notional tax credit equal to one-ninth of the cash sum paid.
Shareholders who pay tax at the basic rate (20 per cent) will have no further liability to tax.
Non-taxpayers will be unable to make a claim for repayment of the notional tax credit.
The position of higher rate taxpayers is as follows (using a cash dividend of £90 as an example)