HMRC Rules on Glencore ROC vs Dividend10 Nov 2023 15:01
We have received an important announcement regarding a change in the tax treatment of distributions to your holdings in Glencore plc. If you hold Glencore shares in an ISA or SIPP, this is for informational purposes only and will not have any tax consequences for you.
Since 2011, Glencore plc has been making distributions to its shareholders from its share premium account. As a Swiss domiciled company, these payments have been exempt from Swiss withholding tax. In accordance with the guidance provided by Glencore and the market's prevailing classification at the time, we have categorised the distributions from Glencore to you as a return of capital and not a dividend payment.
We have been informed of a case in which HMRC assessed payments from Glencore as income for UK tax purposes, rather than capital, affecting UK shareholders.
This assessment was appealed to the First-tier Tribunal Tax Chamber (FTT), which ruled that the payments should be considered dividends of an income nature, leading to the dismissal of the appeal.
As a result of the FTT's decision, we will classify future distributions from Glencore as dividend payments. As a result of the FTT's decision, we will classify future distributions from Glencore as dividend payments. This applies to the recent payments made on 22 September 2023, to holders as of 30 August 2023, and the payment made on 1 June 2023, to holders as of 5 May 2023. As such, we will now reverse and repost these payments as a dividend.
We are aware that this case is undergoing further appeal to the Upper Tribunal, and we will reassess the situation based on the outcome. The appeal is expected later this year, though the publication of a judgment might take some time. Any decision regarding the reclassification of historical payments will also be made after this point.
If you would like to read the full judgement, please copy and paste the link below into your web browser:
https://financeandtax.decisions.tribunals.gov.uk/judgmentfiles/j12414/TC 08460.pdf
If you are unsure of how this affects you and what need you need to do, please check with an independent tax adviser. This message is not personal advice and is a summary of the announcement by HRMC.
IMPORTANT NOTE - If you have any questions or queries regarding this information, please send us a secure message and ensure you quote the following in the Subject field: DIVIDEND - Glencore plc - 9813082
Updated: 10/11/23
Sign In
Follow the stocks
