15. Dividends and appropriations
| 2007 £m |
2006 £m |
|
|---|---|---|
| Ordinary dividends declared and charged to equity in the year | ||
| Final 2006 – 19.18 pence per share, paid on 18 May 2007 (Final 2005 – 17.44 pence per share, paid on 17 May 2006) | 492 | 418 |
| Interim 2007 – 11.90 pence per share, paid on 16 November 2007 (Interim 2006 – 10.82 pence per share, paid on 17 November 2006) | 309 | 275 |
| 801 | 693 | |
| Preference dividends declared and charged to equity in the year | 17 | 17 |
| Coupon payments on direct capital instrument – gross of tax | 53 | 52 |
| 871 | 762 |
Subsequent to 31 December 2007, the directors proposed a final dividend for 2007 of 21.10 pence per ordinary share (2006: 19.18 pence), amounting to £553 million (2006: £492 million) in total. Subject to approval by the shareholders at the AGM, the dividend will be paid on 16 May 2008 and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2008.
Interest on the direct capital instrument issued in November 2004 is treated as an appropriation of retained profits and, accordingly, is accounted for when paid. Tax relief will be obtained at a rate of 30%.
Irish shareholders, who are due to be paid a dividend denominated in euros, will receive a payment at the exchange rate prevailing on 27 February 2008.
