Offshore Assets - Reinvested Dividends & Tax

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weston68

Registered User
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Over the years I've received new shares in lieu of UK dividends (via Scrip and Dividend Reinvestment plans).

Looking for advice on the tax treatment of the dividend which was used to buy the shares.

Two questions:
Is the dividend which was used to buy the shares still subject to Irish income tax?
If it is - is it the gross or net sterling amount shown on the re-investment receipt that needs to be declared on the tax return?
 
If you are Irish resident/domiciled etc then the shares in lieu are taxed in Ireland. The net amount is taxed.
 
For what it's worth, I think from a practical point of view, people with relatively small shareholdings in foreign currencies are better off participate in a DRIP if there is one available - simply because of the costs associated with foreign exchange transactions and lodging currency cheques in Ireland.
 
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