Barclays.comTax information
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.
Income tax – dividends
For the tax years ending 5 April 2012 and 5 April 2013, 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):
| £ | |
|---|---|
| Cash dividend | £90.00 |
| Tax credit | £10.00 |
| Income | £100.00 |
| Higher rate tax* | £(32.50) |
| After-tax income | £67.50 |
* The higher rate itself is 40% but a special rate of 32.5% applies to higher rate taxpayers in respect of income from UK dividends. In this example, tax payable under self assessment is £22.50 (made up of £32.50 less the tax credit of £10.00).
NOTE: The additional rate of income tax is 50% for the tax years ending 5 April 2012 and 5 April 2013, applying to individuals with taxable income over £150,000. However, a special rate of 42.5% applies to additional rate taxpayers for income from UK dividends. Therefore, in the example above, the tax payable under self assessment is £32.50 (made up of £42.50 less the tax credit of £10).
Shareholders whose dividends are paid directly to a bank or building society account will receive, in mid-March each year, a single tax voucher relating to all dividends paid in the year. The tax voucher should be kept safely as it will help when completing tax returns.
Capital Gains Tax
Capital Gains Tax (CGT) may be payable by individuals on gains made from the disposal of Barclays shares.
Each individual has an annual (non-cumulative) exemption, which for the tax years ending 5 April 2012 and 5 April 2013 is £10,600 of chargeable gains. Where payable, CGT is levied at a rate of 18% for basic rate taxpayers, and 28% for higher and additional rate taxpayers.
Example calculation for Capital Gains Tax
Mr Smith bought 1,000 shares in November 1991 at a cost (including dealing costs) of £3,575. He sells the shares in January 2012 and realises (after dealing costs) £21,500. He owned no other shares in the period.
| 2011/2012 | |
|---|---|
| Calculation | £ |
| Net Proceeds | 21,500 |
| Deduct Cost | (3,575) |
| Gain | 17,925 |
| Annual Exemption | (10,600) |
| Chargeable gain | 7,325 |
Capital Gains Tax can be complex, particularly where shareholdings are built up over a period of time and where part disposals out of existing shareholdings are made. Shareholders should take professional advice in these circumstances.
Details on tax issues may affect shareholders. This information should not replace professional advice.
