Company: BDRX
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001214659-25-006756
Chunk: 137

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-01
Form: DRS
Chunk 137
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United States corporations. Non-corporate U.S. Holders may qualify for the lower rates of taxation with respect to dividends
on Depositary Shares or Pre-Funded Warrants applicable to long term capital gains (i.e., gains from the sale of capital assets
held for more than one year), provided that certain conditions are met, including certain holding period requirements and the absence
of certain risk reduction transactions. However, such reduced rate shall not apply if we are a PFIC for the taxable year in which we pay
a dividend, or were a PFIC in the preceding taxable year. As indicated in the section titled “Dividend Policy” herein,
we intend to retain any earnings for use in our business and do not currently intend to pay dividends on our Ordinary Shares.

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Subject to the
paragraph below, dividends generally will constitute income from sources outside the United States, which may be relevant in calculating
a U.S. Holder’s foreign tax credit limitation. For this purpose, dividends that we distribute generally should constitute “passive
category income,” or, in the case of certain U.S. Holders, “general category income.” Dividend payments may be made
without withholding or deduction for or on account of United Kingdom tax.

Notwithstanding
the paragraph above, if 50% or more of the Depositary Shares or Pre-Funded Warrants are treated as held by United States persons,
we will be treated as a “U.S.-owned foreign corporation.” In that case, dividends may be treated for United States. foreign
tax credit purposes as income from sources outside the United States to the extent paid out of our non-United States source
earnings and profits, and as income from sources within the United States to the extent paid out of our United States source earnings
and profits. There can be no assurance that we will not be treated as a United States-owned foreign corporation. If the dividends are
taxed at the lower tax rates generally applicable to long-term capital gains (as discussed above), the amount of the dividend taken into
account for purposes of calculating the United States foreign tax credit limitation will generally be limited to the gross amount of the
dividend, multiplied by the preferential rate divided by the highest rate of tax normally applicable to dividends. The rules relating
to the determination of the foreign tax credit are complex, and U.S. Holders are urged to consult their tax advisors to determine whether
and to what extent such U.S. Holder will be entitled to a foreign tax