FAQ: How should the STC credit be applied?

The company paying the dividend must notify the beneficial owner of any part of the dividend that carries a STC credit, and must be applied pro rata to the full dividend. If there is sufficient STC credit to cover the full dividend amount no Dividends Tax becomes payable by the beneficial owner. The remaining STC credit (if any) may be carried forward and be used in respect of future dividends. However, remaining STC credits will expire three years after 1 April 2012.

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