Shares - Tax back

[ariston]

Hi,

Sorry if I seem stupid but i'm a newbie...

I bought shares a couple of years ago and sent in the original dividend withholding counterfoils to the tax man three months ago, in total approx 250 euro. I haven't heard anything... How does this apply in credits? Should I get in touch with them?...

Thanks,

A

 

[ClubMan]

If you don't pay tax and the dividend income would not bump you into the 20% band then you use the DWT counterfoils to claim back the DWT. If you pay income tax at 20% and the dividend income does not bump you into the 42% bracket then you have no further liability for income tax on the dividend income but you still need to declare it and the fact that DWT was paid. If you pay tax at 42% then you get a tax credit for the DWT paid and need to pay the additional 22% on the dividend income. You don't make it clear which situation you were in and what you were doing in sending the DWT counterfoils in but I'm not sure that sending them in is necessary unless asked by Revenue to vouch for the DWT payment for which you are claiming a credit or tax back. What sort of return did you send in?

 

[ariston]

I see what you mean.

Basically, dividends from shares are taxed at the rate at which your pay is taxed. When dividends are issued the counterfoil shows the dividend withholding tax.

I thought that there was a margin below at which tax could be claimed back...it was to make a declaration and hoping to get an extra few quid as I could do with it.

Is the best policy to do nothing in such circumstances and let the revenue get in contact with you...