Brent Sandiford

Just so i understand; I use Interactive Investor as my dealing platform and they pay dividends into my account. Then they buy shares equal to the amount of dividend automatically. So this would be subject to Tax? I also hold paper shares, say in SHELL PLC, issued via Equitini and they issue share certificates. So this WOULNT be subject to tax?

I have an Interactive Investor account where all dividends are automatically reinvested. Do I need to declare these as dividend and so pay tax on them...? If so would the tax not be an allowable cost come selling the shares for capital gains tax..?