I didn’t receive my dividends as they were reinvested – what do I do?

Many investment portfolios generate dividend income from some of your holdings. These dividends may be paid quarterly, annually, or at irregular intervals. In some cases, rather than being paid directly into your bank account or by cheque, the dividends are automatically reinvested into your portfolio.

It is a common misconception that dividends which are not physically received do not need to be reported. However, this is incorrect. All dividends, whether received as cash or reinvested, must be declared on your Self Assessment tax return as investment income.

Failure to include reinvested dividends could result in underpayment of tax and potential penalties. It’s important to review your investment statements carefully each tax year to ensure all income is accurately reported. If you have a financial advisor, you can request your consolidated tax statement. You can also find this report if you are using an investment platform. Let us know if you need help finding the write paperwork.