BHP / S32 Demerger

[PinkDalek]

It said:

8.3 United Kingdom tax consequences for BHP Billiton Plc Shareholders
and BHP Billiton Limited Shareholders continued
(b) Outline of United Kingdom taxation implications of the Demerger Dividend
(1) General
For Participating United Kingdom Shareholders, the receipt of South32 Shares as a part of the Demerger will be treated
as a dividend. The value of a Participating United Kingdom Shareholder’s dividend receipt will be equal to the market value
on the BHP Billiton Limited Distribution Date or BHP Billiton Plc Distribution Date (as appropriate) of the South32 Shares
received by them.


Silly question, but is this classed as a UK or a foreign (Australian) dividend?

We treated it as a UK dividend on the basis that it was a distribution by BHP Billiton Plc itself (presuming it was).

Further discussion on this and related matters available over at TMF:

http://boards.fool.co.uk/south32-demerg ... sort=whole

PD

[PinkDalek]

Thank you PD - much appreciated.

So UK div and 'Box 12 - Stock dividends'. I shall let my accountancy adviser know.

I think the discussion in the other place concluded it might be justified to include as a normal dividend. This in view of the non-applicable "instead" in HMRC's stock dividend description.

As I said over there, the end result should be the same.

PD