disposal of bonus shares

Listed company declared a special interim dividend in the form of distribution in specie of shares of its subsidiary held by the listed company to the shareholders whose names appeared on the register of members as of the book closure date in proportion to their then respective shareholdings in the listed company on the basis (I still hold these special dividend: bonus shares in my account) I have asked my bank to provide the market opening price & the market closing price of each bonus share as of the transaction date (the date when I received bonus shares in my securities account per the bank statement). If I dispose the bonus shares in future, may I know whether I can use the following TOTAL COST OF DISPOSAL to calculate the CGT? market closing price of each bonus share as of the transaction date x number of shares to be disposed = TOTAL COST OF DISPOSAL I look forward to receiving your reply. Thank you very much Best regards, 

Name removed Admin 

Hi,

As the majority of your income is foreign income, a tax return is still required. For the Shares, please refer to Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Thank you

Hi HMRC Admin 5, Thanks for your information. As of today, I still hold these special dividend: bonus shares since it granted May I know how and where to report these special dividend (bonus shares) in 2022-2023 self assessment return? Thank you

Hi HMRC Admin 5, Thanks for your information. As of today, I still hold these special dividend: bonus shares since it granted May I know how and where to report these special dividend (bonus shares) in 2022-2023 self assessment return? Thank you

Hi MMYC,

If they are actual dividend payments, these will be under dividends.
If foreign dividends, they can still be declared here but if they amount to more than £2000, you must show them as foreign dividends on the foreign income section.

Thank you.

Hi HMRC Admin 20, Thank you for your explanation. The subject heading of the listed issuer's announcement: payment of interim dividend by way of distribution in specie of shares in its subsidiary: M Ltd the declaration of an interim dividend in the form of a distribution in specie of a majority of the Class B ordinary shares of M Limited indirectly held by the Company Date of receipt of bonus shares: 24 March 2023 No. of BONUS shares granted: Special interim dividend - 10 BONUS shares Market OPENING Price as of 24 March 2023: HKD$140.80 per share Market CLOSING Price as of 24 March 2023: HKD$140.20 per share As of today: I still hold these 10 Bonus shares (NOT SELL) Que 1: Per the announcement, may I confirm is it actual dividend payment? Que 2: If my understanding of Que 1 is correct. May I know my calculation of this foreign dividend is correct? My calculation: HKD$140.20 x 10 bonus shares = HKD1,402 (equivalent to GBP148.83 based on the exchange rate of March 2023: monthly exchange rates. Currency units per £1 HK: 9.4203) Que 3: If my calculation of Que 2 is correct, can I add them with the CASH DIVIDEND? If so, the total amount of dividend is GBP162 (NOT OVER GBP2,000) and it can be reported under DIVIDEND. Que 4: As I received a special interim dividend: 5 bonus shares as on 25 March 2022 before I arrived in the UK last May 2022. I still hold these 5 bonus shares (NOT SELL). May I confirm it with you that I don’t need to declare this special interim dividend: 5 bonus shares as I didn’t arrive in the UK when I received them? However, I have to report capital gains tax when I sell these 5 bonus shares, correct? Thank you and I look forward to receiving your reply.

Hi MMYC,

If they are actual dividend payments, these will be under dividends.
If foreign dividends, they can still be declared here but if they amount to more than £2000, you must show them as foreign dividends on the foreign income section,

Thank you.

 

Hi MMYC,

You will need to check with the company making the distributing, whether it is dividend, as we are unable to confirm this.  
We cannot comment on your calculation.  You will need to submit your calculation in writing to
HM Revenue and customs
BX9 1AS.  
You will need to review the guidance at RDR3 and take the tests to confirm your residence status.  
If you are treated as resident and qualify for split year treatmentm, then you would only need to report any gain from their disposal. 
RDR3 Statutory Residence Test

Thank you.