Unilever 2000 Annual Report Download - page 122

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120
Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information
Taxation for US residents
United Kingdom
Taxation on dividends
Under United Kingdom law income tax is not w ithheld from
dividends paid by United Kingdom companies. Shareholders,
whether resident in the United Kingdom or not, receive the
full amount of the dividend actually declared.
If you are a shareholder resident in the United Kingdom
you are entitled to a tax credit against your liability for
United Kingdom income tax, equal to 10% of the aggregate
amount of the dividend plus tax credit (or one-ninth of the
dividend). For example, a dividend payment of £9.00 will
carry a tax credit of £1.00.
If you are a shareholder resident in the US, the dividend
actually declared is taxable in the US as ordinary income and
is not eligible for the dividends received deduction allow able
to corporations. The dividend is foreign source income for
US foreign tax credit purposes.
In addition, under the current income tax Convention
between the US and the UK (the ‘Convention’), a US
shareholder eligible for the benefits of the Convention
may elect to be treated for US tax purposes only as having
received an additional taxable dividend. The additional
deemed dividend is equal to one-ninth of the actual cash
dividend received (an additional dividend of £1 in the above
example). The shareholder will be eligible to claim a US
foreign tax credit in the amount of the additional deemed
dividend. The tax credit may, subject to certain limitations
and restrictions, reduce the shareholder’s US Federal income
tax liability. The procedure for making this election is
described in IRS Revenue Procedure 2000-13.
Taxation on capital gains
Under United Kingdom law , when you sell shares you may
be liable to pay capital gains tax. How ever, if you are either:
• an individual w ho is neither resident nor ordinarily
resident in the United Kingdom, or
• a company which is not resident in the United Kingdom
you will not be liable to United Kingdom tax on any capital
gains made on disposal of your shares.
The exception is if the shares are held in connection w ith
a trade or business which is conducted in the United Kingdom
through a branch or an agency.
Inheritance tax
Under the current estate and gift tax convention between
the United States and the United Kingdom, ordinary shares
held by an individual shareholder who is:
• domiciled for the purposes of the convention in the
United States; and
• is not for the purposes of the convention a national of
the United Kingdom
will not be subject to United Kingdom inheritance tax on:
• the individual’s death; or
• on a gift of the shares during the individual’s lifetime.
The exception is if the shares are part of the business
property of a permanent establishment of the individual
in the United Kingdom or, in the case of a shareholder w ho
performs independent personal services, pertain to a fixed
base situated in the United Kingdom.