Leyshon Energy Limited Proposed Cash Distribution (2398D)
27 Januar 2015 - 11:40AM
UK Regulatory
TIDMLEN
RNS Number : 2398D
Leyshon Energy Limited
27 January 2015
27 January 2015
LEYSHON ENERGY LIMITED
PROPOSED CASH DISTRIBUTION OF APPROXIMATELY US$15.4 MILLION
Further to the Company's announcement of 13 January 2015, the
Company has received some queries regarding the tax treatment of
the proposed cash distribution in the hands of UK resident
shareholders. Your Board has therefore decided to provide a brief
summary of the expected tax position of UK resident shareholders
upon receipt of the cash distribution.
Please note that the following summary is only intended as a
general guide, is not definitive and is applicable to UK resident
shareholders only. If shareholders are in any doubt about their tax
position with regards to the cash distribution, they should consult
their own professional advisers.
The cash distribution will be made pursuant to section 57 of the
BVI Business Companies Act 2004 and article 21.1 of the memorandum
and articles of association of the Company which permits the Board
to declare a resolution in respect of a dividend payment.
Accordingly, we expect that the cash distribution shall be
considered by UK HMRC to constitute dividend income in the hands of
recipient shareholders.
Individual Shareholders who are UK resident may be entitled to a
tax credit of one ninth of the amount of the cash distribution
received from the Company and will be taxed on the aggregate of the
cash distribution and the tax credit (the "Gross Dividend"). The
Gross Dividend will be treated as the top slice of a shareholder's
income and taxed as such.
For basic rate income taxpayers the Gross Dividend will be taxed
at a rate of 10%. For higher rate income tax payers that rate will
be 32.5% and for additional rate income taxpayers it will be 37.5%.
The credit may then be available for set-off against that tax
liability, with the consequence that the total liability for the
taxpayer will be the following percentage as a proportion of the
dividend:
-- 0% for basic rate income taxpayers;
-- 25% for higher rate income taxpayers; and
-- 30.56% for additional income rate taxpayers.
UK resident corporate shareholders and pension funds will not
normally be liable to UK taxation on any dividend income and are
not entitled to payment in cash of the related tax credit.
Under current UK and BVI legislation, no tax is withheld from
dividend payments by the Company. Therefore, the Company will not
assume any obligation to withhold tax at source from the payment of
the cash distribution to shareholders.
As mentioned earlier, if shareholders are in any doubt about
their tax position with regards to the cash distribution, and in
particular if they are non-UK resident for tax purposes, then it is
recommended that they consult their own professional advisers.
Shareholders are reminded that it is expected that the cash
distribution will be finally determined by the Directors shortly
after the forthcoming General Meeting (assuming the resolutions are
passed) and paid, as soon as practicable, to Shareholders on the
Company's register of members as at the date of cancellation of the
admission of the Company's shares to trading on AIM, for which the
preferred cancellation date is 10 February 2015.
Leyshon Energy Limited
Peter Niu, Company Secretary
Tel: + 86 10 8444 2882
admin@leyshonenergy.com
Cantor Fitzgerald Europe
David Porter/Sarah Wharry (Nominated Adviser)
Richard Redmayne (Corporate broking)
Tel: +44 207 894 7000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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