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SAN

Gilts, bonds, and interest-bearing shares
bruncher
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SAN

#188454

Postby bruncher » December 20th, 2018, 6:50 pm

I recall there was a change in dividend tax that affected this preference share, but my search has been unsuccessful in recovering any posts about it. Can anyone remember or have I imagined it?

hiriskpaul
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Re: SAN

#188457

Postby hiriskpaul » December 20th, 2018, 7:01 pm

Yes, when George Osborne scrapped the old dividend tax credit scheme. The SAN terms are such that the dividend is described as a gross figure and the payout is the net after taking off any tax credit. So when Osborne scrapped the tax credit it obliged Santander to pay the gross dividend amount. A very welcome bonus from Osborne at the time.

These unusual terms also applied to SANB, BBYB and I think possibly a few other obscure prefs as well.

bruncher
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Re: SAN

#188711

Postby bruncher » December 21st, 2018, 5:21 pm

Thanks. Perhaps only good until Old Labour takes control?

hiriskpaul
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Re: SAN

#188717

Postby hiriskpaul » December 21st, 2018, 5:42 pm

bruncher wrote:Thanks. Perhaps only good until Old Labour takes control?

There is a risk of the tax system being changed and some kind of tax credit or withholding tax is reintroduced, but I think it more likely that future governments, Labour or Conservative, will gradually increase the income tax on dividends.


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