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HMRC internal manual

International Manual

Double Taxation applications and claims: Vouchers: Voucher showing Stock Dividends

Sometimes shareholders can choose to receive a dividend in the form of additional shares in the company in question, rather than in the form of cash.

These are called stock dividends, or scrip dividends, and carry only a credit for notional tax, which is not payable.

Where the dividend due cannot be exactly divided into an equivalent value of whole new additional shares, there may be a very small residual cash dividend as well.