IHTM18110 - Listed stocks, shares and investments: dividends

x-dividends are essentially dividends that are declared but not yet paid at the date of valuation.

A listed company usually pays a dividend on its shares twice a year. The value of the dividend is announced some weeks before it is actually paid. In the intervening period,

• the value of the shares does not reflect the additional dividend, but
• its quotation on SEDOL (IHTM18092) is endorsed “XD” (x-dividend) to reflect it.

The value of the dividend is then usually provided separately on SEDOL in pence per share (except for Unit Trust funds (IHTM18095)).

• If the deceased/transferor held “XD” shares, the right to receive the dividends is an asset of the chargeable estate (IHTM04043). Ensure that the dividends are included at their full quotation value.
• If PC&S advise that any dividends are omitted, raise the addition with the taxpayer, subject to de minimis limits (IHTM18042).