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Posted Wed, 11 Sep 2024 12:43:53 GMT by Barry Bradley
Hi, I have shares in a US company that split in 2 in tax year 2023/2024. The company issued a portion of their existing shares value as new shares in the new company, paid to me as a dividend. Due to the value of the dividend, I will need to pay dividend tax on these new shares. Subsequently, I sold these new shares and am due to pay capital gains tax, given the total value of my portfolio increased and so the amount I sold exceeded the threshold for capital gains tax. My question is, does the tax I will pay on the dividend count as a loss in capital and so therefore offset the capital gains tax I need to pay? Many thanks, 

Name removed admin .
Posted Thu, 19 Sep 2024 06:25:08 GMT by HMRC Admin 25 Response
Hi Barry,
 Sorry no.
The dividend is derived from the share and is taxed under income as dividends, using dividend rates.
Capital gains is a separeate tax entirely and is payable where the disposal value exceeds the allowable costs.
Both are declared on SA106, where a foreign tax credit can be claimed for any foreign tax payable.
Please see for further guidance.
Self Assessment: Foreign (SA106)
Thank you. 

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