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Posted Sat, 26 Apr 2025 09:27:03 GMT by aamizayn ahmed
From a previous employment with a company, I have purchased some company shares, now held in a brokerage account with Equateplus. Dividends are "paid out" on these share twice a year , BUT automatically reinvested and result in additional (fractions of) shares held. I have no choice in this; dividends are automatically reinvested, I never get to see the income in my bank account, this is how these company I believe, from checking information available online 1) There is no tax due on dividend income, when these dividends are automatically reinvested (as described above), and nothing needs to be declared on my annual tax return 2) If the dividend income in any tax year is less than the tax free dividend threshold, then no tax is payable 3) Capital gains tax is due when a sale of these shares occurs in the future (if this results in a capital gain) I am completing my tax return for FY24/25 over the next couple of weeks and would appreciate guidance on this matter quite quickly. Kind regards, 

Name removed admin .
Posted Wed, 30 Apr 2025 07:47:18 GMT by HMRC Admin 25 Response
Hi aamizayn ahmed,
As the company automatically reinvests the shares then you do not declare any annual dividend and only report it when you sell.
Thank you. 

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