Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

Scrip dividend taxation

Reply
Highlighted
don1
New Contributor

Scrip dividend taxation

When one opts for scrip dividend instead of a cash dividend, is the divi tax deducted at source before the scrip is issued? If not, how does such a transaction affect the capital gains tax declared when the shares are sold at some future date (after being held for more than 3 years)? Perhaps one could assume that the shares would be regarded as having a cost price of zero effectively showing a 100% capital gain when they are sold.

0 Kudos
Reply