The tax effects of joining the Plan will depend on your particular circumstances.

Under current UK legislation and HM Revenue & Customs practice, the taxation consequences for shareholders will be outlined below. The summary of taxation treatment is not exhaustive, and, in particular, it only deals with the position of the shareholder resident in the UK.

Income Tax

Individual shareholders will be deemed to have paid income tax at the lower rate of 10%. This is known as the tax credit. If you pay income tax at the lower or basic rates, you will have no further tax to pay on the dividend. If you pay income tax at the higher rate, you will have a further liability for tax. It is not possible to claim a repayment of the tax credit.

Capital Gains Tax

The cost of the shares, including the dealing charge and stamp duty reserve tax, will be the base cost of the shares bought on your behalf, for calculating the chargeable gain or allowable loss arising on sale.

You are reminded that taxation levels and bases can change and it is your responsibility for paying any taxes (including, income tax and capital gains tax) which may be attributable to your participation in the Plan. If you are not sure how your tax position will be affected, you should consult an independent adviser before making a decision about joining a DRIP.