MalGee

Given the difference of opinion and that no definitive answer has come from HMRC directly I contacted them and recieved the following reply:- Thank you for contacting the Taxes Technician’s. Scrips & Drips – UK and foreign What is a – SCRIP – also known as a Stock Dividend. Tp gets a new share in place of a dividend (the company create a new share so the total number of shares in the company increases. DRIP – Dividend Reinvestment Plan. Tp gets a EXISTING company share instead of a dividend (so the total number of shares remains the same) UK SCRIP TAXABLE? – YES. Shows on SA101, stock div box UK DRIP TAXABLE? – YES. Shows on SA100, TR3 with normal dividends FOREIGN SCRIP – NOT TAXABLE. FOREIGN DRIP – TAXABLE? – YES. Shows on Sa106, normal dividend. If you have declared the foreign dividends and if you don’t think you should have done then you can make a claim for Overpayment Relief.