Paul O Mahoney
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Late last year Pfizer got rid of segments of its business in a merger with Mylan.
A new entity was created and is now quoted on NYSE, part of the deal was the payment of a special dividend to Pfizer stock holders, which was paid by shares in the new company and these were added to the existing stock account.
I'm fairly certain that these shares should be taxed like any other dividend that is received during the year.
Just a note, no US federal tax , 15%, was deducted at source.
Am I correct in this tax treatment? Also as the shares given were essentially free is there any other tax implications such as CGT on disposal?
Thanks in advance
A new entity was created and is now quoted on NYSE, part of the deal was the payment of a special dividend to Pfizer stock holders, which was paid by shares in the new company and these were added to the existing stock account.
I'm fairly certain that these shares should be taxed like any other dividend that is received during the year.
Just a note, no US federal tax , 15%, was deducted at source.
Am I correct in this tax treatment? Also as the shares given were essentially free is there any other tax implications such as CGT on disposal?
Thanks in advance