BT 2006 Annual Report Download - page 144

US information reporting and backup withholding
Dividends paid on and proceeds received from the sale, exchange or other disposition of ordinary shares or ADSs may be subject to
information reporting to the IRS and backup withholding at a current rate of 28% (which rate may be subject to change). Certain
exempt recipients (such as corporations) are not subject to these information reporting requirements. Backup withholding will not
apply, however, to a US Holder who provides a correct taxpayer identification number or certificate of foreign status and makes
any other required certification or who is otherwise exempt. Persons that are United States persons for US federal income tax
purposes who are required to establish their exempt status generally must furnish IRS Form W-9 (Request for Taxpayer
Identification Number and Certification). Holders that are not United States persons for US federal income tax purposes generally
will not be subject to US information reporting or backup withholding. However, such holders may be required to provide
certification of non-US status in connection with payments received in the United States or through certain US-related financial
intermediaries.
Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’sUS
federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by
timely filing the appropriate claim for refund with the IRS and furnishing any required information.
UK stamp duty
A transfer of an ordinary share will generally be subject to UK stamp duty or UK stamp duty reserve tax SDRT at 0.5% of the
amount or value of any consideration provided rounded up (in the case of stamp duty) to the nearest £5. SDRT is generally the
liability of the purchaser. It is customarily also the purchaser who pays UK stamp duty. A transfer of an ordinary share to, or to a
nominee or agent of, a person whose business is or includes issuing depositary receipts gives rise to a 1.5% charge to stamp duty
or SDRT of either the amount of the consideration provided or the value of the share issued rounded up (in the case of stamp duty)
to the nearest £5. No UK stamp duty will be payable on the transfer of an ADS (assuming it is not registered in the UK), provided
that the transfer documents are executed and always retained outside the UK.
Transfers of ordinary shares into CREST will generally not be subject to stamp duty or SDRT unless such a transfer is made for a
consideration in money or money’s worth, in which case a liability to SDRT will arise, usually at the rate of 0.5% of the value of the
consideration. Paperless transfers of ordinary shares within CREST are generally liable to SDRT at the rate of 0.5% of the value of
the consideration. CREST is obliged to collect SDRT from the purchaser of the shares on relevant transactions settled within the
system.
UK inheritance and gift taxes in connection with ordinary shares and/or ADSs
The rules and scope of domicile are complex and action should not be taken without advice specific to the individual’s
circumstances. A lifetime gift or a transfer on death of ordinary shares and/or ADSs by an individual holder, who is US domiciled
(for the purposes of the UK/US Estate and Gift Tax Convention) and who is not a UK national (as defined in the Convention) will not
generally be subject to UK inheritance tax if the gift is subject to US federal gift or US estate tax unless the tax is not paid.
LIMITATIONS AFFECTING SECURITY HOLDERS
There are no limitations under the laws of the United Kingdom restricting the right of non-residents to hold or to vote shares in the
company.
DOCUMENTS ON DISPLAY
All reports and other information that BT files with the US Securities and Exchange Commission (SEC) may be inspected at the
SEC’s public reference facilities at Room 1580, 100 F Street, NE Washington, DC, 20549, USA. These reports may be accessed via
the SEC’s website at www.sec.gov
PUBLICATIONS
BT produces a series of reports on the company’s financial, economic, compliance, social and environmental performance. Most of
these reports (as well as the EAB Annual Report on BT’s compliance with the Undertakings), are available to shareholders on request
and can be accessed on the internet at www.bt.com/aboutbt More detailed disclosures on BT’s implementation of social, ethical
and environmental policies and procedures are available online through our fully and independently verified social and environment
report at www.bt.com/betterworld
Document Publication date
Annual Review and Notice of Meeting May
Annual Report and Form 20-F May
Social and Environment Report May
EAB Annual Report May
Quarterly results releases July, November, February and May
Current Cost Financial Statements September
Statement of Business Practice July 2004
For printed copies, when available, contact the Shareholder Helpline on Freefone 0808 100 4141 or, alternatively, contact the
Registrar in the UK, at the address on page 143.
BT Group plc Annual Report and Form 20-F 2006 Additional information for shareholders142