Claire S

Please can a HMRC Admin clarify the following on DRIPS: An individual paid into a company share scheme for several years. On maturity of the schemes and on leaving the company the former employee continues to hold the shares. Rather than take cash dividends, the former employee utilises the dividend reinvestment plan available and the amount is reinvested straight back into the company. The former employee receives only a new share certificate that is allocated against a share holder reference number. The former employees accountant has advised that the payment be subject to income tax on the self assessment as it is a dividend. Information on this forum suggests that as the dividend has been reinvested back into the company via a DRIP and not taken as a cash dividend, the dividend does not be declared on the self assessment but will be liable to CGT on the gain from any future sales of the shares. Correct? Thanks in advance.