Why are dividends paid with a deduction of 10% tax?
Company registrars are obliged to deduct 10% income tax at source on all dividends paid, even when the underlying shares are held in a tax exempt ISA. Once the dividends have been received by iDealing, we will lodge a tax reclaim on your behalf and credit your account with the remaining 10% upon receipt from the registrars. Tax reclaims will only be possible where the dividend payment date is on or before 5th April 2004. Dividends paid after 5th April 2004 will not be eligible for a tax reclaim on your behalf.
