The Lemon Fool

Further to the discussion about banks reporting interest payments to HMRC, is there also a requirement for an institution that has bought out one's shares following a takeover, to report to HMRC the amount they paid to each shareholder for their shares?

Watis

Watis wrote:Further to the discussion about banks reporting interest payments to HMRC, is there also a requirement for an institution that has bought out one's shares following a takeover, to report to HMRC the amount they paid to each shareholder for their shares?

I'm sure there is not.
And if you hold through a nominee the company would not know.
And the nominee will not know your profit position, nor whether your total sales reach the reporting threshold.

V8

Of course if dividend income drops substantially year on year HMRC might ask why. (These days they do not seem to look at anything, however they are supposed to have software that looks for such anomalies/variances)

Charlottesquare wrote:Of course if dividend income drops substantially year on year HMRC might ask why.

They might. But successive reductions in the amount of dividends that are taxed at 0% have surely motivated many investors to sell off their higher yielders first. And often they show lower gains.

My taxable dividends are down about 90% in the last 3 tax years, due to se1lective disposals.

Lootman wrote:

Charlottesquare wrote:Of course if dividend income drops substantially year on year HMRC might ask why.

They might. But successive reductions in the amount of dividends that are taxed at 0% have surely motivated many investors to sell off their higher yielders first. And often they show lower gains.

My taxable dividends are down about 90% in the last 3 tax years, due to se1lective disposals.

But of course the disposals in effect may have given HMRC's software clues as to why dividends are now reduced, they will have gathered into your tax records the disclosed prior capital gains (presuming over £40k etc and disclosed).

There is very little data how HMRC checking/analysis systems work, for obvious reasons they do not tell us much, but as they keep cutting staff and training they presumably are increasing their use of tech for anomaly checking, auto matching from other sources etc.