Payments to Shareholders

Unlike other listed companies, the Company makes payments to its shareholders in the form of C Shares.

C Shares are redeemable preference shares of 0.1p each in the capital of Rolls-Royce Holdings plc (the Company). The Company will generally issue C Shares to its ordinary shareholders twice a year in lieu of a cash dividend.

Shareholders can opt for one of the following:

  • redeem all C shares for cash;
  • redeem the shares for cash and reinvest the proceeds in additional Ordinary Shares;
  • keep the C Shares.

When you first purchase shares in the Company you will receive a Welcome letter in which you will be invited to complete a Payment Instruction Form. If you would like to receive cash or additional Ordinary Shares from the Company it is important that you complete this form and return it to the Registrar.  If you do not complete a Payment Instruction Form you will receive C Shares. 

The Payment Instruction Form is a standing instruction which means it will be applied to all future issues of C Shares and no further action is required.  All shareholders are free to change this instruction at any time by completing a new Payment Instruction Form.

Between 2004 and 2008, the Company issued B shares. More information about B shares and their previous issues can be found at B Shares - Historical Information Link opens in a new window .

C Share issue

July 2014 Issue
C Shares per ordinary share134
Ex entitlement to C Shares23 April 2014
Record Date for entitlement to C Shares25 April 2014
Latest time and date for receipt by the Registrars of the completed Evergreen Mandates for C Shares and C Share Entitlement elections through CREST5.00 p.m. on     
2 June 2014
C Share issue date1 July 2014
Redemption takes place3 July 2014
Despatch of cheques/adjustment of CREST accounts/payment into bank accounts in respect of C Shares which have been redeemed for cash3 July 2014
Despatch of share certificates for C Shares in respect of the balance of Shareholders who did not elect to redeem all their C Shares and who have not applied to have their C Shares in uncertificated formOn or as soon as possible after     
3 July 2014
Computershare to purchase Ordinary Shares on the market using the redemption proceeds from those C Shareholders who have elected to re-invest their C Share proceedsAs soon as practicable after 3 July 2014
Ordinary Share certificates and/or CREST accounts credited, redemption statements and contract notes issued to Shareholders who elected to re-invest their C Share proceedsNo later than   
19 July 2014

C Share dividend

Calculation period1 January - 30 June 2014
Dividend rate0.233%
Record date for C Share dividend2 June 2014
Payment of C Share dividend1 July 2014

Historical C Shares issues Link opens in a new window 

In summary:

  • The issue of C shares should not give rise to a charge to UK Income Tax or Capital Gains Tax.
  • The redemption of C shares for cash may, depending on your circumstances, give rise to a Capital Gains Tax charge. Many individual shareholders, however, will find that no tax is payable because the chargeable gain on the redemption of the C shares for cash (together with any other chargeable gains for the tax year in question) is less than the annual exempt allowance. To check the current annual exempt allowance please go to http://www.hmrc.gov.uk/rates/cgt.htm. You'll find information about the tax effects of C Shares on pages 7 to 10 of the Shareholder Guide Link opens in a new window 

Important information regarding C Shares issued in July 2011

The following information applies only to the C Shares issued by the Company in July 2011. All subsequent issues of C Shares should be treated, for tax purposes, as per the guidance provided in the Scheme Circular Link opens in a new window  and the Shareholder Guide Link opens in a new window .

July 2011 C Share issue

At the technical level the tax treatment of the C shares issued in July 2011 differs slightly from the analysis of other C share issues (as summarised in the first tab). However, for shareholders who elect either immediately to redeem their July 2011 C shares for cash or to reinvest their redemption proceeds through the CRIP, in practice the same result is expected to apply as for other C share issues.

For other shareholders the result may be different, depending on their personal circumstances. In broad terms, the tax liability, if any, which arises in respect of the July 2011 C share is likely to arise on issue rather than on a later redemption. Further details of the treatment of the July 2011 C share issue can be found on pages 30-31 of the Scheme Circular Link opens in a new window .