Company: BDRX
Filing Date: 2025-05-08
Form Type: POS AM
Source: 0001214659-25-007196
Chunk: 102

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-08
Form: POS AM
Chunk 102
---
.S. Holder’s tax basis in its Depositary Shares, and to the extent the amount of the
distribution exceeds such U.S. Holder’s tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under United States federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will generally
be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital
gain under the rules described above. A dividend in respect of the Depositary Shares will not be eligible for the dividends-received deduction
allowed to corporations in respect of dividends received from other United States corporations. Non-corporate U.S. Holders may
qualify for the lower rates of taxation with respect to dividends on Depositary Shares 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.

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 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