Build up your shareholding
The British American Tobacco Dividend Reinvestment Plan (the 'DRIP') has been introduced as a straightforward and economic way of using your dividends to build up your shareholding in British American Tobacco.
The British American Tobacco Dividend Reinvestment Plan is not being offered in the US or to US persons or in Canada or otherwise to North American persons, nor is it being offered in any jurisdiction where participation in the DRIP would require Computershare Investor Services PLC or British American Tobacco to comply with governmental or regulatory procedures or similar formalities.
The basic principles of the DRIP are:
Your participation in the DRIP is entirely voluntary, and you may withdraw from the scheme at any time upon giving the required notice in writing to Computershare Investor Services PLC.
A booklet is available giving further details of the DRIP and how it operates. Please contact Computershare Investor Services PLC for a copy.
If you wish to participate in the DRIP, please contact the Plan Administrator at Computershare Investor Services PLC for an application form. Alternatively, you can download both the DRIP booklet and the application form by visiting www.investorcentre.co.uk/viewbatshareholding and selecting Downloadable Forms.
In both cases, you will need your shareholder reference or account number to hand, which can be found on your share certificate or dividend counterfoil. Computershare Investor Services PLC will also be able to advise you of the date by which your completed instructions must be received, in order to be registered in time for the next applicable dividend payment.
You will be liable to tax on dividends invested in the DRIP as if you had received your dividend in cash. For details of the dividend payment amounts see Dividend history. As a general indication, if you are resident in the UK and pay tax at a lower or basic rate – you have no further tax to pay as the 10 per cent tax credit will meet the income tax liability.
For capital gains tax purposes, the base cost of the Shares bought on your behalf under the DRIP, for calculating the chargeable gain or allowable loss arising on the sale, will be the price of the Shares purchased including the stamp duty reserve tax and the costs of acquiring the Shares.
Please refer to the DRIP booklet for a general summary of the tax issues for individual shareholders who are resident in the UK. The summary is for guidance only and if you are in any doubt, you should consult an independent financial adviser authorised under the Financial Services and Markets Act 2000.