Advice on how to treat tax on last month’s share issue.

Santander shareholders were able to subscribe one new share for every 10 shares they held at a price of 4.85 euros per share. Shareholders who wished to exercise their right to subscribe shares were allowed to do so for a period of 15 days from 6 July to 20 July 2017.

Banco Santander shares can either be held directly or via CREST Deposit Interests (CDIs). While UK CDI holders are set to benefit from the capital raising known as a ‘rights issue’, those invested via Santander’s Nominee Service are not being given the same options.

Santander has arranged an automatic sale of the rights of UK investors holding CDIs through its nominee service. Those who have invested in Santander CDIs separately through a broker may be able to take up their rights; however, those who hold CDIs via Santander’s Nominee Service were not given the right to take up the rights issue.

Tax Information
The sale or gift of Santander shares and rights has Spanish tax reporting implications. The following information has been provided by Banco Santander, SA:


  • shareholders disposing of Banco Santander shares or subscription rights to Banco Santander shares by way of sale or gift and who realise a gain on that disposal are required by Spanish law to file a tax return (Form 210) with the Spanish tax authorities declaring the gain made on the disposal
  • a Form 210 must be filed annually for all such transfers carried out in each calendar year. A Form 210 must be filed by the shareholder between 1 January and 20 January in the year following the year in which the sale or gift of the shares was completed. Even if no tax is payable, failure to file a Form 210 on time can give rise to a 100 euros fine which may increase to 200 euros if a Form 210 is not filed before a request has been issued by the Spanish tax authorities
  • if a shareholder wishes to apply for an exemption from Spanish tax in relation to the sale or gift of shares or subscription rights as a resident of a Member State of the European Union, a Form 210 must be accompanied by an appropriate certificate of residence issued by the relevant tax authority (in the UK this would be HM Revenue and Customs)
  • Spanish tax Form 210 is in Spanish; however, there is a guide written in English which explains how to complete this form. This guide can be found online here
  • Section 7 of the above guide explains how to obtain a Certificate of Tax Residence from HMRC.

Article from ACCA In Practice