Carlos Barcia

Hi, and thank you for your response. Does this mean that HMRC will treat the revenue from the sale of shares as dividend irrespective of any supporting documentation provided, because this is how it has been incorrectly reported to the IRS? I appreciate this is a US tax error which I am trying to correct, but the revenue is fully from the sales of shares and not from a dividend. Thanks in advance

I have recently had tax withheld in the US by a broker, which is related to a take over of one US company by another and purchase of their listed stock. The sale was well documented, with 48% of the stock holding paid for in cash, with the remaining 52% made up of stock in the new company. Upon payment of the cash element, a 15% withholding tax was taken by the broker, with the proceeds seen as a dividend instead of a stock sale. My questions relates to how this amount needs to be declared on my SA return. Can I declare this as sale proceeds with the relevant capital gain declared, or will HMRC see this also as dividend income if the issue is not resolved with the broker / IRS? A full set of documentation is available documenting the sale, the agreement, and the issue with the broker treating it as a dividend, which clearly shows the payment as proceeds of the sale / takeover. Thanks