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Posted Tue, 17 Dec 2024 07:12:29 GMT by Nathan Abel
Hi, I wanted to double check that you have to pay income tax on dividends that are automatically reinvested or not? This is on the assumption you have used you personal allowance already and have dividends in excess of GBP 500
Posted Fri, 27 Dec 2024 13:54:58 GMT by HMRC Admin 32 Response
Hi,
If the company automatically reinvest them then no.
If it has been your choice to do so then yes.
Thank you.
Posted Thu, 16 Jan 2025 18:48:28 GMT by Steven Birch
I'm sorry to revisit this topic, however I am seeing much contradictory information. In several places on this forum, I see advice from HMRC Admin that "automatically reinvested dividends do not need to be declared". On the other hand, "Help about: Dividends 02" on the SA form itself states: "...Include any dividend from accumulation units or shares that are automatically reinvested..." I would value clarity as I am anxious to get the return correct. Many thanks
Posted Tue, 04 Feb 2025 12:25:49 GMT by HMRC Admin 17 Response

Hi ,
 
If the company automatically reinvestes the dividends then you dont include them.

If it has been your choice to reinvest then these must be declared .

Thank you .

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