Dividend payment taken back??

[Guest Tony82]

Hi guy

I'm relatively  new here but I have noticed a strange withdrawal from my share dealing account.

It turns out to be a dividend that I got from MTCH back in December ($2 per share special dividend). I reinvested those funds in other stocks I already own, so the cash in my account was sitting at £100 for a month or two. But I have just noticed I'm in negative balance by -£188!  This is now three months after I got the dividend and now they took it off me? Is this normal?  I've been scanning my statements to see if there is an obvious explanation but I can't work it out.?

 

 

[Guest harry0e]

I've experienced the same bizarre treatment. IG withdrew money from my ISA on the 23rd, in relation to the $2 special dividend on MATCH, then credited me a greater amount on the 25th. This means I'm missing 89% of my dividend amount. 

 

IG have advised me as follows, without specifying which aspect could be affecting me in this instance: 

 

Dividend reclassification refers to changes companies make to all or part of previously reported dividend income to some other tax classification.

 

•             A dividend is a distribution of a company’s earnings and profits.

•             A distribution by a corporation is taxed as a dividend to the extent of the corporations' earnings and profits, and any distribution in excess of the earnings and profits is generally a non-taxable return of capital.

•             In some cases, a company may have paid out more in distributions than it earned during the year.

•             In this situation, all or part of the distribution may be reclassified from a taxable dividend to a return of capital which is generally non-taxable.

•             A dividend may also be reclassified in other ways (i.e. the reallocation of ordinary dividends to tax-qualified dividends or dividends to capital gain distribution.