[40% lower dividend payouts on the same shares due to new IG calculation]

On 21/03/2019 at 10:35, JamesIG said:

Apologies it's taken me a couple of days to get back to you on this one. 

I have just spoken to our corporate actions team and they have confirmed that this stock has gone through an income reclassification process which the underlying company has initiated. Income 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 (for mutual funds)

This means the dividend adjustment have had to be CONTRA'd and reissued under the companies newly classified valued. It's a relatively complex reason so apologies that it has taken me a while to get this information for you. 

I've experienced the same bizarre treatment and explanation. 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. 

[Dividends not being paid?]

I'm having the same problem with the same MATCH dividend. 

 

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.

 

[Dividend payment taken back??]

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.