When you receive your dividend cheque, income tax has already been deducted by the company at basic rate. Basic-rate taxpayers have nothing more to pay.
Higher-rate taxpayers have to pay the difference between basic and higher rate at the end of the tax year.
Non-taxpayers can reclaim the tax deducted through their local tax office.
CAPITAL GAIN TAX
You make a capital gain when you sell shares at a higher price than you are paid. If you sell at a lower price, you make a loss.
Tax is a very complex subject – you should always speak to a properly qualified tax adviser to make sure you have a complete picture of the tax rules.
WHO IS INELIGIBLE TO OPEN A TRADING ACCOUNT?
Upon discovering that an investor fits any of the descriptions below, the stockbroker should refuse to accept his or her application to open an account, or refuse to take orders from such customer to buy, sell or subscribe securities: