Up to 6 April 2016
Dividends paid before 6 April 2016 were made up of 90% dividend income and 10% tax credit. Dividend tax vouchers were issued to shareholders for any dividends paid which set out the amount of dividend, date of payment and the tax credit amount. The tax credit amount on the dividend tax voucher could be used to offset any UK income tax due on the dividend income.
Consolidated dividend tax vouchers were issued once a year (covering both the Final dividend paid in May and the Interim dividend paid in September) in circumstances where a shareholder elected to have dividends paid into a bank account.
From 6 April 2016
Dividend tax credits have been replaced by an annual £5,000 tax-free dividend allowance, on dividend income across a shareholder’s entire share portfolio. Any dividend income above £5,000 is taxable at a rate dependent on your income tax bracket and personal circumstances. Dividends paid on shares within an individual savings account (ISA) remain exempt from income tax.
Dividend income in excess of the tax-free allowance is taxed at the following rates:
Registered shareholders will continue to receive confirmation of the date and amount of dividend paid by Reckitt Benckiser Group plc (previously called a dividend tax voucher, and now referred to as a dividend confirmation). This should be included with any other dividend income received when calculating and reporting total dividend income received. It is your responsibility to include all dividend income when calculating any tax liability.
If you have any tax queries, please contact a financial advisor for advice.
T +44 (0) 1753 217800
Registrars Computershare Investor Services plc, The Pavilions, Bridgwater Road, Bristol BS99 6ZY
Shareholder helpline +44 (0) 370 703 0118
Rupert Bondy +44 (0) 1753 217800