Capital Gains on Shares & Dividends

I have held shares in Walmart for a number of years. The shares attract dividends. These dividends are paid based on my position on the record dates throughout the year and usually have a payable date of a few weeks after the record date. On the date they are actually paid (a few weeks after the record date), the amount of the dividend stated on the record date is automatically reinvested in Walmart shares as I have no option to take the dividend as cash. example; The 8th December 2023 was the record date for latest dividend and it attracted a gross dividend, based on my stockholding position on this day. The Gross dividend was $28.50, with a net dividend after us tax of $24.22. The payable date is stated as 02 Jan 2024. Now, on 02 Jan 2024 the net dividend of $24.22 is reinvested automatically and I am given a shares based on the share price at the time of trade on 02 Jan 2024. When I sell these shares I understand that i pay tax on any gain made, but do I need to report the initial dividend too as a dividend. . Also if i have to declare the dividend separately what date do i use for computations, the record date or payable date? If I have to report the dividend as well as the Capital Gain, do I state the dividend in GBP based on the exchange rate in Dec 2023 and then the cost of acquisition of the reinvested stock in Jan 2024 based on exchange rate in Jan 2024? As I have made a taxable gain with other trades of this same stock this year, I know I'll be in a position report it next year, I just want to get ahead of the situation for my computations. Please help me as It's causing me a lot of stress as I've been really confused by the whole process, I've completed self assessment in previous years, but never for shares and dividends, so it all feels confusing.

Hi,

As the company reinvested the funds for extra shares then no, you do not declare the dividend. For reporting the shares, please refer to the guidance here: 

HS284 Shares and Capital Gains Tax (2023)

Thank you.

These reinvested dividends, do they go into my 104 holding and adjust the number of shares in pool and cost of acquisition according to how much was dividend was worth. Example. Before my dividend I had a pool of 100 shares worth £1000. My reinvested dividend was £12 which gave me an additional 1 share. Does my pool holding increase to 101 shares with a pool cost of £1012?

Hi
That is correct.