Dividend - frequently asked questions
What is a dividend?
A dividend is an amount based on a company’s profits paid out to shareholders for each share they hold.
Dividends on Aviva plc ordinary shares are usually paid in May and November each year and by default are paid to shareholders by cheque.
How do I ensure I receive my dividend?
From November 2017, Aviva will only pay cash dividends directly into a nominated bank account. This provides shareholders with the following benefits:
- Fast, secure and reduced environmental impact of paying dividends – we send out over 200,000 cheques each dividend.
- No more fees for the replacement of lost cheques – one in five cheques from the 2015 interim dividend remain uncashed.
For information on setting up your payment instruction, please visit Shareholder contacts.
What is the Aviva Dividend Reinvestment Plan?
The Company offers a Dividend Reinvestment Plan. The plan provides an option for eligible shareholders to purchase additional ordinary shares in the Company using their cash dividends. You can either join online or by completing a form that you can obtain from the Company's Registrar, Computershare.
Full details can be found in the Plan explanatory booklet and terms and conditions.
Please note, this service is not appropriate for shareholders living in certain jurisdictions, for example North America. Please see clause 1 of the terms and conditions for more information.
What changes have been made to the way dividends are taxed?
With effect from 6th April 2016 the 10% tax credit on dividends has been replaced with an individual annual tax free allowance of £5,000 across all dividend income, above which there is a tax liability. For further information, please visit the HMRC.gov.uk website or view this publication released by HMRC. For queries about your own tax position, please speak to an independent tax advisor.
Why haven't I received a tax voucher at the time my dividend was paid?
Shareholders will receive one annual dividend confirmation giving details of their total dividends for the previous tax year. This is usually sent with the AGM mailing in March/April each year.
Providing one annual dividend confirmation ensures that you receive a complete record of the dividends you have received on your shares in time for completing your tax return.
Separate tax vouchers have previously been issued to preference shareholders and those receiving communications electronically. We are introducing annual dividend confirmations for these shareholders for the 2016/2017 tax year as follows:
|Share type||1st dividend on annual dividend confirmation*||2nd dividend on annual dividend confirmation*||Annual dividend confirmation issued:|
|Ordinary, email recipient||17/05/2016||17/11/2016||March/April 2017|
|Aviva 8 ¾% preference||30/06/2016||31/12/2016||31/12/2016|
|Aviva 8 ⅜% preference||30/09/2016||31/03/2017||31/03/2017|
|GA 8 ⅞% preference||01/07/2016||01/01/2017||01/01/2017|
|GA 7 ⅞% preference||01/10/2016||01/04/2017||01/04/2017|
* these dividend payment dates are provisional only until each dividend has been formally approved and declared.
Any shareholder receiving their dividends by cheque, or through the Dividend Reinvestment Plan, will receive an individual dividend confirmation at the time of each dividend.
How do I receive my dividends if I do not reside in the UK?
From May 2017, shareholders who wish to receive their dividends in a currency other than Pound Sterling can elect to receive their dividends in Euros, free of charge, directly into a nominated Euro bank account in the Single Euro Payments Area (SEPA).
Simply complete an online instruction (details here), complete a mandate form sent with recent dividend cheques to those living in a SEPA zone country or contact Computershare. Alternatively shareholders may receive their dividend in over 100 international currencies using the Global Payment Service (fees apply).