Self declaration - script dividend and one-time incomes

Dear sirs, I have 3 questions regarding self-declaration for the year 2021-22: a) I hold shares in Company A which is listed on the Hong Kong Stock Exchange. In December 2021, Company A declared a special interim dividend in the form of a distribution in specie of certain shares of Company B (also listed on the Hong Kong Stock Exchange) indirectly held by Company A to its shareholders. As I still hold 1 share in Company B to date, should I declare this dividend income = its closing price on the trading day on Hong Kong Stock Exchange same as the date of distribution? Please confirm. b) On the basis of question a) above, will I be liable to Capital Gains Tax if I subsequently sold the 1 share in Company B. If yes, is acquisition costs = the amount of dividend income declared in 2021-22, i.e. its closing price on the trading day on Hong Kong Stock Exchange same as the date of distribution? Please confirm my understanding. c) I had one-time income from self-employment and interest income in the year 2021-22 which will not recur in the year 2022-23. What should I do explicitly during self declaration for the year 2021-22 so that NO “1st payment on account for 2022-23” will be due on 31 January 2023? Currently the “1st payment on account for 2022-23” appears on HMRC’s full tax calculation online. Many thanks for your advice.

Hi Askhmrc2021 Askhmrc 

1. Yes you need to declare it  
2. Possibly liable to capital gains. Please refer to Shares and Capital Gains Tax (Self Assessment helpsheet HS284) 
3. If you do not expect to have the same liability for 22/23, you can reduce your payments on account.
You need to confirm the figure you want it reduced to.
Please note however, if you reduce it by too much, the orignal due dates for payments on account still apply

Thank you.