Koala Bear

I have a follow-up clarification and questions to our earlier exchange, as I preparing my tax return: Clarification: as mentioned before, the company does pay out dividends; I receive a quarterly dividend confirmation statement. The issue is that I do not receive these dividends in cash. The way the share plan accounts works, is that rather than receive the dividends in cash, these monies are automatically reinvested by the share plan in buying additional shares. I have no choice in this matter. Questions: a) Is my understanding still correct that I do not need to declare these dividends, and therefore no tax is due on these dividends. b) To support future capital gains calculations: At what cost would I add these additional shares to my holdings? Thank you.

Thank you. This is clear and very helpful.

Good day, I am resident and tax-resident in the UK, but have some foreign short term deposits that earn interest, which I declare on my tax return. In recent years though, these deposits earned negative interest, ie I had to pay. Can I offset these negative interest receipts (=interest payments) from recent years with interest earnings made on same deposits in 23/24 tax year? Thank you.

Good day, I have seen similar queries like the one I have on this forum, but still was not certain on UK tax treatment. That is why I am asking my question. From a previous employment, I have a share plan account, where I accumulated vested shares. Dividends are paid out, BUT automatically reinvested and result in additional (fractions of) shares held. I have no choice in this; dividends are automatically reinvested: this is how the share plan account works. From other threads on a similar topic, I understand: 1) There is no tax due on dividend income, when these dividends are automatically reinvested (as described above) 2) Capital gains tax is due when a sale of these shares occurs in the future (if this results in a capital gain) My two questions: A) Is my understanding under 1) and 2) correct? B) In which HMRC manual (chapter etc.) is this explained: both (no) tax on dividend income and capital gains. Thank you for your clarification in advance.