Dividend Tax Changes 2016 962X460px Equiniti

Dividends taxation regime update

26 April 2016

Steve Banfield, Industry Director, provides insight into the practical implications of the recent changes

Our February update included changes to the dividend taxation regime that would come into effect from April 6 2016. We have since made payments on behalf of a number of our corporate clients under the new regime and I thought it worthwhile to provide an insight into the practical implications of such a change and what Equiniti has been doing to ensure payments are made and received in line with the new requirements.

New draft stationery is provided to our clients at the dividend planning stage reflecting the required amends along with an additional explanatory document for shareholders that can be enclosed with the dividend mailing. Many of our clients to date have chosen to include the explanatory document in the dividend mailing, providing an extra level of comfort and explanation to the shareholders.

Behind the scenes our core technology platform was updated with the new tax rate parameters, something that was tested and implemented seamlessly with no degradation to the service that we deliver to our clients and their shareholders. Our Shareview site was also updated and electronic broadcast messages issued to shareholders who are signed up to receive e-communications.

As with all industry changes to legislation and regulation it is a result of careful planning, system enhancement and clear communication that this change has been implemented with minimal disruption to business as usual activity.

Steve Banfield, Industry Director