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Hammerson plc Announces Interim 2025 Dividend and Tax Implications

Strategic Insights

— 1 min read

Hammerson plc, a UK-based property development and investment company, has announced the declaration of an interim dividend for the period ending December 31, 2025. The dividend will be treated as a Property Income Distribution (PID) and will be subject to a 20% UK withholding tax unless exemptions apply. The company will not offer a scrip dividend alternative, but a Dividend Reinvestment Plan (DRIP) will be available for shareholders.

Key Takeaways:

  • The Interim 2025 Dividend will be 7.94 pence per ordinary share, treated as a PID, and subject to a 20% UK withholding tax unless exemptions apply.
  • The dividend will be paid to shareholders registered on the UK principal register and the South African branch register who have elected to receive the dividend in cash.
  • The Record Date for both UK and SA shareholders is at the close of business on Friday, 5 September 2025.
  • The DRIP purchases settlement date is Monday, 20 October 2025 in the UK and Thursday, 30 October 2025 in South Africa.
  • The South African Rand exchange rate for the Interim 2025 Dividend is ZAR 23.7988 to GBP 1.
  • Shareholders who do not elect the DRIP will be paid as follows:

+ PID UK Shareholders (GBP pence): Gross amount of PID 7.94, less 20% UK withholding tax, resulting in a net PID dividend payable of 6.352 (5% excess reclaim).

+ SA Shareholders (ZAR cents): Gross amount of PID 188.96247, less 20% SA dividends tax, resulting in a net PID dividend payable of 141.72185.

  • Cash PIDs are exempt from SA income tax but subject to SA dividends tax at a rate of 20% unless exempt or qualified for reduced rate.
  • Shareholders electing the DRIP will have their residual amounts paid out in cash, and no further tax should be payable on this cash.

Statistics:

  • The Interim 2025 Dividend amount is 7.94 pence per ordinary share.
  • The UK withholding tax rate is 20%.
  • The South African Rand exchange rate is ZAR 23.7988 to GBP 1.
  • The number of shares allocated under the DRIP is capped at the nearest whole number, with residual amounts paid out in cash.
  • The net PID dividend payable for UK Shareholders is 6.352 (5% excess reclaim).
  • The net PID dividend payable for SA Shareholders is 141.72185 (5% excess reclaim).

Sources:

  • Johannesburg Stock Exchange company announcement
  • Hammerson plc website
  • Investec Bank Limited
  • UK Registrars
  • SA Transfer Secretaries
  • Computershare Investor Services Proprietary Limited

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