Barclays 2008 Annual Report Download - page 324

Shareholder information
Taxation of capital gains
Subject to PFIC rules discussed below, generally, US holders will not be
subject to UK tax, but will be subject to US tax on capital gains realised on
the sale or other disposition of ordinary shares, preference shares or ADSs.
Capital gain of a noncorporate US holder that is recognised in taxable
years beginning before 1st January 2011 is generally taxed at a maximum
rate of 15% where the holder has a holding period of greater than one
year. The gain or loss will generally be income or loss from sources within
the United States for foreign tax credit limitation purposes.
Taxation of premium on redemption or purchase of shares
No refund of tax will be available under the Treaty in respect of any
premium paid on a redemption of preference shares by the Bank or
on a purchase by Barclays PLC of its own shares. For US tax purposes,
redemption premium generally will be treated as an additional amount
realised in the calculation of gain or loss.
Taxation of passive foreign investment companies (PFICs)
Barclays PLC and the Bank believe that their respective shares and
ADSs should not be treated as stock of a PFIC for US federal income tax
purposes, but this conclusion is a factual determination that is made
annually and thus may be subject to change. If Barclays PLC or the Bank
were to be treated as a PFIC, unless a US holder elects to be taxed annually
on a mark-to-market basis with respect to the shares or ADSs, gain realised
on the sale or other disposition of their shares or ADSs would in general not
be treated as capital gain. Instead, for a US holder, such gain and certain
‘excess distributions’would be treated as having been realised ratably over
the holding period for the shares or ADSs and would be taxed at the
highest tax rate in effect for each such year to which the gain was allocated,
together with an interest charge in respect of the tax attributable to each
such year. With certain exceptions, a US holder’s shares or ADSs will be
treated as stock in a PFIC if Barclays PLC or the Bank was a PFIC at any time
during such holder’s holding period in their shares or ADSs. Dividends that
a US holder receives from Barclays PLC or the Bank will not be eligible for
the special tax rates applicable to qualified dividend income if Barclays PLC
or the Bank are treated as a PFIC with respect to such US holder either in
the taxable year of the distribution or the preceding taxable year, but
instead will be taxable at rates applicable to ordinary income.
Stamp duty
No UK stamp duty is payable on the transfer of an ADS, provided that the
separate instrument of transfer is not executed in, and remains at all times
outside, the UK.
Estate and gift tax
Under the Estate and Gift Tax Convention between the United Kingdom
and the United States, a US holder generally is not subject to UK
inheritance tax.
Exchange controls and other limitations affecting
security holders
Other than certain economic sanctions which may be in force from time
to time, there are currently no UK laws, decrees or regulations which would
affect the transfer of capital or remittance of dividends, interest and other
payments to holders of Barclays securities who are not residents of the UK.
There are also no restrictions under the Articles of Association of either
Barclays PLC or the Bank, or (subject to the effect of any such economic
sanctions)under current UK laws, which relate only to non-residents of
the UK, and which limit the right of such non-residents to hold Barclays
securities or, when entitled to vote, to do so.
Documents on display
It is possible to read and copy documents that have been filed by
Barclays PLC and Barclays Bank PLC with the US Securities and Exchange
Commission at the US Securities and Exchange Commission’s office of
Investor Education and Assistance located at 100 F Street, NE, Washington
DC 20549. Please call the US Securities and Exchange Commission at
1-800-SEC-0330 for further information on the public reference rooms
and their copy charges. Filings with the US Securities and Exchange
Commission are also available to the public from commercial document
retrieval services, and from the website maintained by the US Securities
and Exchange Commission at www.sec.gov.
322 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08