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FTSE 100 company dividend taxed

Practical Issues
Ricksure
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FTSE 100 company dividend taxed

#340188

Postby Ricksure » September 14th, 2020, 12:48 pm

My wife's ISA holds shares in Smurfit Kappa Group PLC a FTSE100 company however I have only just noticed the dividends from SKG are taxed at 25%, is this normal when held in an ISA or to tax dividends of FTSE100 companies with the Head Office outside the UK

As a none taxpayer living on her state pension would she be allowed to claim the tax back or is that not allowed as the shares are held in an ISA

swill453
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Re: FTSE 100 company dividend taxed

#340195

Postby swill453 » September 14th, 2020, 1:17 pm

It was discussed here, though no definitive answer and the fool.co.uk link doesn't work any more viewtopic.php?t=550

Seems there's 20% withholding tax, I don't know if you can reclaim it.

Scott.

Alaric
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Re: FTSE 100 company dividend taxed

#340208

Postby Alaric » September 14th, 2020, 2:33 pm

swill453 wrote:Seems there's 20% withholding tax, I don't know if you can reclaim it.


It's domiciled in Ireland. It may be one of those Companies where if CGT is unlikely to be an issue, it's better held outside an ISA. The point being that the Irish tax withheld may be offset against UK tax liabilities.

mc2fool
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Re: FTSE 100 company dividend taxed

#340211

Postby mc2fool » September 14th, 2020, 2:48 pm

Ricksure wrote:My wife's ISA holds shares in Smurfit Kappa Group PLC a FTSE100 company however I have only just noticed the dividends from SKG are taxed at 25%, is this normal when held in an ISA or to tax dividends of FTSE100 companies with the Head Office outside the UK

As a none taxpayer living on her state pension would she be allowed to claim the tax back or is that not allowed as the shares are held in an ISA

From HMRC, no. However, the following page on the Irish Revenue site includes a section on Refunds for non-residents. Good luck! Let us know how you get on. :D

https://www.revenue.ie/en/companies-and-charities/dividend-withholding-tax/index.aspx

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Re: FTSE 100 company dividend taxed

#340350

Postby monabri » September 15th, 2020, 8:42 am

Ricksure wrote:My wife's ISA holds shares in Smurfit Kappa Group PLC a FTSE100 company however I have only just noticed the dividends from SKG are taxed at 25%, is this normal when held in an ISA or to tax dividends of FTSE100 companies with the Head Office outside the UK

As a none taxpayer living on her state pension would she be allowed to claim the tax back or is that not allowed as the shares are held in an ISA


Similar to Tui and IAG ( when they both actually paid a dividend pre Covid!) , there is withholding tax. Holding SKG in an ISA is of no advantage in mitigation of the withholding tax ( in a SIPP, it is a different matter). In fact, It might be better to hold SKG in a non ISA account.

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Re: FTSE 100 company dividend taxed

#340706

Postby Ricksure » September 16th, 2020, 6:12 pm

Thanks very much for your replies, trying to reclaim the tax back even if allowed seems a lot of trouble for the amount of money involved and loosing 25% of dividends in tax (increased from 20% this year) does make it unviable to hold in her ISA however the share price has done fairly well resently and I have recomended she takes the profit and uses it to top up a couple of her existing ISA holdings


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