Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Tax on re-invested dividends - Company long term incentive plan

    The responses from 'HMRC Admin 32' & 'HMRC Admin 20' appear to contradict - noting the questions from 'Mort1968' and 'Jinster768' are essential the same - i.e. an individual company employee subscribing to a company share plan where the dividends are reinvested by the company, on behalf of the employee. How is this scenario different to "if the business reinvests its dividends to buy more shares, it won’t have to pay taxes until they sell them" ( the company/business reinvests on behalf of the employee, surely?). I have been researching this topic for a while and continue to read contradictory statements. Lloyds bank (through Equiniti Financial Services) operates a 'DRIP' - are these dividends subject to tax?