Dividends

Dividends
Dividends are the way the Company makes distributions from its profits to shareholders. Compass Group currently pays dividends twice a year, and the level of each dividend is decided by the Company's directors. A dividend is paid for each share, so the amount
you receive depends on the number of shares you own at the record date. It can be paid in cash or used to buy more Compass Group shares.

'Record date' and 'ex-dividend' date
A dividend is paid based on the number of shares held on the share register at the record date, which is two days after the ex-dividend date. If you receive a dividend and are not sure if you are entitled to it, you should contact the agent who sold your shares for you.

The ex-dividend date is a specific date, occurring after the dividend has been declared, after which buyers are no longer entitled to receive the last declared dividend. This is known as going 'ex-dividend' and before this date the shares are said to be 'cum-dividend'. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you buy shares on or after that date, the previous owner
of the shares (and not you) is entitled to the dividend.

Payment of dividends
i)   You can have cash dividends paid directly to your bank or building society account,
or receive a cheque at your registered address.

If dividends are paid direct to your bank or building society account through the BACS system, it avoids the risk of cheques being lost in the post and your dividend will be in your account on the day the payment is made. To have dividends paid directly to your bank or building society account simply complete and send the Request for Payment of Interest or Dividends Form to Capita Registrars.

The Registrars will send you a single consolidated tax voucher, normally in April of each year, setting out details of all dividends paid in the previous tax year

OR

ii)  You can elect to use your cash dividend to buy more Compass shares under the Dividend Reinvestment Plan ('DRIP'). On or about each dividend payment date, Capita Registrars will calculate the number of shares that can be bought with your dividend at current market prices (after deduction of costs and expenses) and then purchase this number of shares on your behalf. Any cash balance remaining after the purchase of shares will be retained, without interest, and added to your next quarterly dividend.

For more information about the DRIP and details of how to participate, dowload the Dividend Reinvestment Plan Booklet and Application form.
     
Tax
Dividends are announced net of tax. They are treated as if they have been paid after the deduction of basic rate tax (the "tax credit") which is currently 10% of the gross dividend. In general:

• if you are resident in the UK; and
• if you pay tax at the lower or basic rate, you have no further tax to pay; or
• if you pay tax at a higher rate, you will be taxed at a special rate of 32.5% of the gross dividend. You will need to pay the amount above the 10% tax credit (an additional 22.5%) with your overall tax bill for the year. Keep the voucher in case your tax office wants to see it;
• if you do not pay tax, you will not be able to reclaim the tax credit, unless your shares are held in a Personal Equity Plan (PEP), an Individual Savings Account (ISA) or by a charity [TBC].

For the purpose of self-assessment, HMRC requires that you retain tax vouchers for six years. If you lose your tax voucher, contact Capita Registrars, detailing which voucher(s) have been lost. Capita will issue you with duplicates on payment of an administration charge.