INTU PROPERTIES PLC (the “Company”)
Regulated Information Classification: Additional regulated information required to be disclosed under the laws of a Member State of the EU.
10 April 2018
CONFIRMATION OF DIVIDEND TIMETABLE FOR THE CASH 2017 FINAL DIVIDEND, EXCHANGE RATE AND NOTIFICATION THAT SCRIP DIVIDEND ALTERNATIVE WILL NOT BE OFFERED
On 22 February 2018, the Directors proposed a final dividend for 2017 of 9.4 pence per share (the “Final Dividend”) subject to approval by the shareholders of the Company at the Annual General Meeting to be held on Wednesday, 25 April 2018, to bring the total dividend per ordinary share for the year to 14.0 pence.
The Final Dividend will be paid partly as a Property Income Distribution (“PID”) with a gross value of 8.0 pence per share, which will be subject to deduction of a 20 per cent UK withholding tax unless exemptions apply, and partly as a normal dividend (“Non-PID”) with a value of 1.4 pence per share.
A scrip dividend alternative will not be offered on this occasion and all shareholders will therefore receive the dividend in cash.
For further information regarding the Final Dividend, we recommend that shareholders contact our registrars in the UK or South Africa as follows:-
Link Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU (Tel: +44 (0) 371 664 0300). Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 9.00am – 5.30pm, Monday to Friday excluding public holidays in England and Wales.
Terbium Financial Services (Pty) Ltd, 31 Beacon Road, Florida-North, Johannesburg, 1709, South Africa (postal address: PO Box 61272, Marshalltown, 2107, South Africa) (Tel: 0860 2222 13).
or by download from
A timetable of events in relation to the dividend is set out below.
|Currency Conversion Date (Sterling/Rand)||Monday 9 April 2018|
|Finalisation Date||Tuesday 10 April 2018|
|Ex-dividend date (SA)||Wednesday 18 April 2018|
|Ex-dividend date (UK)||Thursday 19 April 2018|
|Record Date (both UK and SA)||Friday 20 April 2018|
|Last date for receipt of Tax Exemption Declaration Forms to permit dividend to be paid gross (UK Shareholders only)||Friday 20 April 2018|
|Dividend payment date (UK & SA)||Thursday 17 May 2018|
SA shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-dividend will be Tuesday 17 April 2018 and that no dematerialisation or rematerialisation of shares will be possible from Wednesday 18 April to Friday 20 April 2018 inclusive. No transfers between the UK and South African registers may take place from Tuesday 10 April to Friday 20 April 2018 (both days inclusive).
(i) Shareholders receiving the dividend in cash:
The Company confirms that the South African Rand exchange rate for the Final Dividend will be 16.8338 ZAR to 1 GBP. Shareholders will receive a cash dividend per ordinary share which will be paid as follows:
|PID||UK Shareholders||SA Shareholders|
|Gross amount of PID||GBP pence 8.00||134.67040 ZAR cents|
|Less 20% withholding tax*/20% SA dividends tax**||GBP pence 1.6||26.93408 ZAR cents|
|Net PID dividend payable||GBP pence 6.4||107.73632 ZAR cents|
*Certain categories of UK shareholder may apply for exemption, in which case the PID will be paid gross.
**This is the net position after South African Shareholders have claimed back 5% from HMRC under the double tax agreement between the United Kingdom and South Africa
|Non-PID||UK Shareholders||SA Shareholders|
|Gross amount of Non-PID||GBP pence 1.40||23.56732 ZAR cents|
|Less 20% SA dividends tax||n/a||4.71346 ZAR cents|
|Net Non-PID dividend payable||GBP pence 1.40||18.85386 ZAR cents|
(ii) Notes for South African shareholders
A 20 per cent UK withholding tax will be deducted from PIDs. The Company will account to Her Majesty’s Revenue & Customs (“HMRC”) in sterling for the total UK withholding tax deducted. SA dividends tax, at the rate of 20 per cent will apply to cash PIDs payable by the Company unless the beneficial owner of the dividend is exempt from SA dividends tax (e.g. if it is a South African resident company).
Under the double tax agreement between the UK and South Africa, the maximum tax payable in the UK is 15 per cent. Therefore on application by South African resident shareholders, 5 per cent of the PID (i.e. one quarter of the 20 per cent UK withholding tax deducted from a PID) is claimable from HMRC, resulting in an effective UK withholding tax rate of 15 per cent. Settlement of any claims for refund will be calculated and settled in sterling by HMRC. As UK withholding tax will be applicable at an effective rate of 15 per cent, the SA dividends tax liability will be reduced to 5 per cent. In such cases the overall tax deducted will therefore be 20 per cent (15 per cent in the UK and 5 per cent in South Africa).
The information given in section (i) above will assist with applications for refunds. For information on PIDs and refund claims, including claim forms and guidance on how to complete them, visit intugroup.co.uk/en/investors/shareholder-information/real-estate-investment-trust/.
SA dividends tax at the rate of 20% will apply to cash Non-PIDs paid by the Company, unless the beneficial owner of the Dividend is exempt from SA dividends tax (e.g. if it is a South African resident company). Since no withholding tax is suffered in the UK on Non-PIDs, no rebate can be claimed. The relevant regulated intermediary (being the SA transfer secretaries or other CSDP, broker or institution, as applicable) will therefore be required to deduct 20% tax on all cash Non-PID's paid to persons who are not exempt from SA dividends tax, and pay this to the South African Revenue Service.
The number of shares in issue as at the declaration date (i.e. 10 April 2018) is 1,355,040,243 ordinary shares of 50p each.
The above information and the guidelines on the taxation of dividends are provided as a general guide based on the Company’s understanding of the law and practice currently in force. Any shareholder who is in any doubt as to their tax position should seek independent professional advice.