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Posted Sat, 18 Nov 2023 14:09:36 GMT by Normany001
Hello, I have in my portfolio several of the above type of ETF's, which generate income by selling options which generate variable monthly returns which are paid as dividends, I pay USA withholding tax. I am not sure how these would be classified for UK tax purposes as Dividend income or straight forward income? If income can the withholding tax still be offset?
Posted Mon, 20 Nov 2023 11:19:02 GMT by Normany001
Sorry this should have read Non-Reported, NOT non-listed
Posted Wed, 22 Nov 2023 13:45:16 GMT by HMRC Admin 19
Hi,

An Exchange Traded Fund (ETF) is a form of Collective Investment Scheme and contains a pool of investments, the scheme property, derived from the contributions of investors. The pool of investments is divided into equal portions called shares, and investors hold a number of shares depending on how much they have contributed.  

There are three types of asset class, equitites, which are subject to dividend tax, bonds that are subject to Income Tax and commodities which are subject to Capital Gains Tax. On disposal, all three classes are subject to Capital Gains Tax.  

Where tax relief is being claimed for overseas tax deductions, the tax return supplementary page SA106, should be completed along with the tax return.

Thank you.

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