Dividend and tax information

When you’re a Standard Life shareholder, you’ll share in our profits when we declare a dividend. This section tells you about dividends, including how and when you could receive them.

The interim dividend of 6.47p per share was paid on 19 October 2016.

Important tax changes

The UK Government have announced changes to the way dividends are taxed for UK individual taxpayers.

The main changes are:

  • The 10% dividend tax credit is abolished for dividends received on or after 6th April 2016 and is replaced by a new tax-free Dividend Allowance
  • The Dividend Allowance means that the first £5,000 of dividend income received is tax free no matter what non-dividend income you have
  • Dividends within your Dividend Allowance will still count towards your basic or higher rate tax bands and may therefore affect the rate of tax that you pay on dividends you receive in excess of the £5,000 allowance
  • You will pay tax on any dividend income you receive over £5,000 at the following rates:
    - 7.5% on dividend income within the basic rate band
    - 32.5% on dividend income within the higher rate band
    - 38.1% on dividend income within the additional rate band

To understand how you are affected by the changes and for more information, there is a Dividend Allowance Factsheet on the HMRC website.

This fact sheet provides more information and gives some examples of how it will work in practice.

Dividend FAQs

 What is a dividend?

If Standard Life makes a profit, our shareholders may get a share of this as a dividend payment. If we don’t perform well, dividends might be reduced or there may be no dividend paid at all.

 When do you pay dividends?

We intend to pay our interim dividend in October and our final dividend in May each year.

 What dividends have you paid?

See the full dividend history below.

Dividend dateAmount
2016 interim dividend - paid 19 October 2016 6.47p
2015 final dividend - paid 24 May 2016 12.34p
2015 interim dividend - paid 20 October 2015 6.02p
2014 final dividend - paid 19 May 2015 11.43p
2014 interim dividend - paid 21 October 2014 5.60p
2013 final dividend - paid 22 May 2014 10.58p
2013 interim dividend - paid 29 October 2013 5.22p
2012 Final dividend (9.8p) and special dividend (12.8p) - paid together on 21 May 2013 22.6p
2012 Interim dividend - paid 14 November 2012 4.90p
2011 Final dividend - paid 31 May 2012 9.20p
2011 Interim dividend - paid 18 November 2011 4.60p
2010 Final dividend - paid 27 May 2011 8.65p
2010 Interim dividend - paid19 November 2010 4.35p
2009 Final dividend - paid 28 May 2010 8.09p
2009 Interim dividend - paid16 November 2009 4.15p
2008 Final dividend - paid 29 May 2009 7.70p
2008 Interim dividend - paid 28 November 2008 4.07p
2007 Final dividend - paid 30 May 2008 7.70p
2007 Interim dividend - paid 30 November 2007 3.80p
2006 Final dividend - paid 31 May 2007 5.40p

 How will dividends be paid?

You can choose how you want to receive your dividend.

  1. Reinvest your dividends in Standard Life plc shares
    If you live in the European Economic Area (EEA), the EU, Iceland, Norway or Liechtenstein, you can join the dividend reinvestment plan (DRIP). This lets you use your cash dividend payments to buy more shares in Standard Life plc through a special dealing arrangement. We don’t currently offer DRIP in Canada and other non-EEA countries.
  2. A cash payment into your bank or building society account
    This is an easy, fast and secure way to receive your dividends.

    We pay dividends in three currencies. Most dividends are paid in pounds sterling. If you have a bank account in Ireland, Germany or Austria you can receive your dividend payment in euros, or in Canadian dollars if you have a bank account in Canada.

    If you want to receive your cash dividend in a different currency, Capita Asset Services provide a dividend currency option service. This service is available to shareholders who receive a dividend of £10 or more, and costs £5 per dividend. This fee is deducted in sterling before the balance is converted into your chosen currency.
  3. Receive a cash dividend payment by cheque
    If you don't choose to reinvest your dividends, or have them paid directly into your bank account, we’ll send you a cheque for the relevant amount. You may be charged a fee to present this cheque, particularly if you live outside of the UK.

To find out more, or change your dividend payment option, log in to the Standard Life share portal and select 'Your dividend options’, or contact us.

 What if I buy or sell shares around the time of dividend payments?

Dividends are paid to all shareholders who are on Standard Life plc's share register at the close of business on the record date. This can be up to three months before the dividend payment date. If you buy or sell shares shortly before the record date this may affect whether you receive the next dividend payment. Check the financial calendar to see when the next record date is. For more information contact your Shareholder Services team or your broker.

 How do I arrange for my dividends to be paid straight into my bank account?

There are two ways to do this:

 How do I register for the dividend reinvestment plan (DRIP)?

There are several ways to sign up for DRIP:

You can still sign up online even if you’re not registered for the Standard Life share portal.

Sign up online

 How do I change my account or address details?

So there's no delay in receiving your dividend payments, please tell your local Shareholder Services team if your bank or address details change.

You can also update your bank and address details online at the Standard Life share portal.

 I've lost my dividend cheque, how do I get a replacement?

Just get in touch with your local Shareholder Services team. There may be an administration charge for this.

Tax information

This information is provided as a general guide. It is for shareholders who acquire and hold ordinary shares as an investment and are their absolute beneficial owners. Except where specifically stated, the information applies to shareholders who are individuals and ordinarily resident and domiciled in the United Kingdom (UK). If you are not a resident of the UK and need tax information, you should seek independent professional advice.

Return of value - tax considerations

A guide and examples of how to apportion base cost relating to the return of value payment paid in April 2015. Please also see information on the Bonus issue of shares in the Capital Gains Tax question and answer below.

Find out more

Tax FAQs

 Is my dividend classed as income?

Dividends received before 6th April 2016 have a notional tax credit of 10%. This notional tax credit is treated as meeting the basic rate liability. If you’re not a higher rate taxpayer, you have no further tax to pay. If you pay income tax at a higher rate, you’ll have further tax to pay but you’ll be able to offset the notional tax credit of 10% against any higher rate tax liability.

The cash dividend and tax credit need to be included in total income when considering the threshold for higher rate tax. When you complete a tax return, you should show the dividend and tax credit amounts separately. You’ll find this information on your tax voucher.

Dividends received on or after 6th April 2016 are subject to new tax rules. The 10% dividend tax credit is abolished for dividends received on or after 6th April 2016 and is replaced by a new tax-free dividend nil rate band ("Dividend Allowance"). The Dividend Allowance means that the first £5,000 of dividend income received is tax free no matter what other non-dividend income you have. When you complete a tax return you should show the dividend amount received on this return. You’ll find this information on your dividend confirmation.

Dividends within your Dividend Allowance will still count towards your basic or higher rate tax bands and may therefore affect the rate of tax that you pay on dividends you receive in excess of the £5,000 allowance.

From 6th April 2016 you’ll pay tax on any dividend income you receive over £5,000 at the following rates:

  • 7.5% on dividend income within the basic rate band
  • 32.5% on dividend income within the higher rate band
  • 38.1% on dividend income within the additional rate band

Republic of Ireland residents
The dividend will be subject to Irish tax. The tax liability will depend on your circumstances. Dividends received prior to 6th April 2016 have a 'notional' UK tax credit. This does not need to be included in your income, but you’ll not be able to reclaim this or set it off against any Irish tax liability you have. For dividends received on or after 6th April 2016 there is no longer a 'notional' UK tax credit.

 Does Standard Life deduct tax from dividends?

Standard Life does not deduct tax from dividends. The company pays dividends from the profits it makes and has already paid tax on these profits. Therefore the dividend declared is the cash amount paid.

Before 6 April 2016, all UK dividends carried a tax credit equal to one-ninth of the dividend paid. This was purely a notional amount and Standard Life did not pay this tax to HMRC. As the tax credit was purely a notional amount, it was not possible to reclaim the tax credit if you were a non-tax payer. From 6 April 2016 this has been replaced by a Dividend Allowance which means that you don't pay tax on the first £5,000 of your total dividend income, no matter what non-dividend income you have.

 Does Standard Life have a tax adviser I could speak to?

No, we can only give you general information, not advice on your specific circumstances.

If you need specific advice you should contact a tax adviser or visit the HMRC website.

 Will I be liable for Capital Gains Tax (CGT) on my shares?

This depends on your personal circumstances. We can’t give advice on potential CGT liabilities for individual shareholders. There is a CGT annual exemption which you can find on the HMRC website.

The cost of your shares for CGT purposes depends on how you acquired them. The cost of:

  • Shares bought at the preferential rate is £2.185 per share
  • Shares bought on the open market is the price paid
  • Bonus shares issued on 10 July 2007 is £3.24875 per share.

Remember, by giving you this information we are not offering tax advice. It is based on you being an individual shareholder, not a trustee, dealer, insurance company or having received your shares by virtue of an office or employment. If you are in any doubt about your tax position you should seek independent advice.

Bonus issue of shares on 10th July 2007

The receipt of bonus shares on 10th July 2007 will have an impact on your base cost for CGT purposes. The impact will depend upon how you were taxed on the bonus shares when you received them.

Bonus shares received in respect of shares bought at the preferential rate of £2.185 per share (preferential shares):

If the value of the bonus shares received [at the time received] with respect to the preferential shares exceeded either 5% of the value of the preferential shares or £3,000, then the receipt of the bonus shares would have given rise to a capital gain as a part disposal of your preferential shares. For determining the value of the bonus shares you would use £3.24875 per bonus share received. In calculating the part disposal gain you would have had to allocate the base cost you had in the existing preferential shares between your existing preferential shares and the bonus shares. That part disposal could, of course, have qualified for exemption under the annual exemption allowance for capital gains when taken together with any other capital gains for that year. The exemption was £9,200 for 2007/08. The base cost to be used in any future disposal would be a combination of the preferential share base cost (that part not used in the part disposal calculation) plus the value of the bonus shares. In this situation, therefore, you would use £3.24875 as the base cost of the bonus shares.

If, however, the part disposal qualified as a "small part disposal" and you elected for those rules to apply then you would have had to reduce the base cost of your preferential shares by the value of the bonus shares, using £3.24875 to calculate the value of the bonus shares for determining the amount of the deduction. A "small part disposal" would have been one where the value of the bonus shares (using £3.24875 per share) is less than 5% of the value of the preferential shares or £3,000.

Bonus shares received with respect to "free" shares received on demutualisation (demutualisation shares):

If you held any demutualisation shares and received bonus shares with respect to them, then this would have given rise to a capital gain equal to the value of the bonus shares (using £3.24875 per shares) and this gain would be subject to the annual exempt amount. The base cost of those bonus shares for any future disposal would be £3.24875 per share.

We reiterate that by giving you this information we are not offering tax advice and it is based on you being an individual shareholder, not a trustee, dealer, insurance company or having received your shares by virtue of an office or employment. If you are in any doubt as to your tax position you should seek independent advice.

 Where can I find my dividend confirmation?

You can download your dividend confirmation from the Standard Life share portal.