Dividends

Dividend dates

  Date
Ex-dividend date interim 30 October 2014
Record date interim 31 October 2014
Interim dividend payable 19 December 2014

What is a dividend?

A payment made to everyone who holds shares, the level of which is based on the company's dividend policy and the number of shares held by shareholders at the record date. It can be paid in cash or used to buy more Tesco shares.

When is it paid?

Tesco currently pays dividends twice a year. The dates are shown in the table above.

What is the ex-dividend date?

We consult the London Stock Exchange Dividend Procedure Timetable to set the date on which shares are sold without entitlement to the next dividend payment.  This is known as the ex-dividend date. If you buy shares before the ex-dividend date, you are entitled to the most recently-announced dividend; if you buy after that date, the dividend is paid to the previous owner of the shares

What is the record date?

A dividend is paid based on the number of shares held on the share register on a particular date, which is known as the record date.  In accordance with the London Stock Exchange Dividend Procedure Timetable, the record date is currently one day after the ex-dividend date. If you receive a dividend and are not sure if you are entitled to it, you should contact the agent who sold your shares for you.

How can I have my dividends paid?

You have the option of:

  • having them paid direct to your bank or building society account
  • electing to use them to buy more Tesco shares via the Dividend Reinvestment plan
  • being sent a cheque to your registered address

If dividends are paid direct into your bank or building society account through the BACS system, it avoids the risk of cheques being lost in the post and your dividend will be in your account on the day the payment is made. Our Registrar, Equiniti Limited, will send you a tax voucher to confirm the amount and to which account it has been paid.

What is the dividend Reinvestment Plan?

We operate a Dividend Reinvestment Plan which allows you to reinvest your cash dividends in more Tesco ordinary shares. If you wish to participate, please either call the Equiniti Limited helpline on 0871 384 2977* (from outside the UK: +44 121 415 7053), apply online or complete an application form and send it to Equiniti Limited, Aspect House, Spencer Road, Lancing Business Park, Lancing, West Sussex, BN99 6DA.

*Lines are open 8.30 a.m. to 5.30 p.m., Monday to Friday and calls to this number are charged at 8 pence per minute plus network extras.

Do I have to pay tax on my dividends?

When you are paid a dividend, you are sent a tax voucher which shows the net amount received and the tax which is deemed to have been paid. On 6 April 1999, the tax credit on dividends was reduced from 20% to 10% of the gross amount.

Your dividends are treated as if they had been paid after the deduction of income tax at the lower rate. In general,

  • if you are resident in the UK , and
  • if you pay tax at the lower or basic rate, you have no further tax to pay; or
  • if you pay tax at a higher rate, you will be taxed at a special rate of 32.5% of the gross dividend. You will need to pay the amount above the 10% tax credit (an additional 22.5%) with your overall tax bill for the year. Keep the voucher in case your tax office wants to see it
  • if you do not pay tax, you will not be able to reclaim the tax credit, unless your shares are held by a charity

If you sell any of your shares at a profit, you may have to pay capital gains tax.

From July 2014, our shareholders will be able to receive their dividend tax vouchers in electronic format removing the risk of vouchers being lost and having to purchase replacements. Shareholders who have both  (i) registered an email communication preference for their shareholding; and (ii) elected to have their dividends paid direct to their bank or building society account, will receive an email on the dividend payment date notifying them that their latest tax voucher has appeared in their Shareview portfolio where it will be securely and permanently stored for future reference. To receive electronic tax vouchers from July 2014, simply register your share portfolio at www.shareview.co.uk (if you have not already registered) and set your communication and payment preferences as described above.

What should I do if I lose my dividend cheque or tax voucher?

Contact the Equiniti Limited helpline on 0871 384 2977* (from outside the UK: +44 121 415 7053) as soon as possible and confirm which payment has been lost.  Equiniti Limited will stop the cheque and issue a replacement.  An administration charge may apply.

Dividend cheques are currently valid for one year from the date of payment. After this time, return any uncashed cheques to Equiniti Limited who will issue a replacement. There may be an administration charge for this service.

If you lose your tax voucher, contact Equiniti Limited, detailing which voucher(s) have been lost.  Equiniti Limited will issue you with duplicates on payment of an administration charge.