Dividend tax on accumulating ETF

Dear HMRC, I am planning to invest in an accumulation ETF and index fund in a General investment account ( outside of ISA/SIPP). Regarding accumulation ETF, the investment platforms comments are as follows - 'An accumulating ETF automatically reinvests any income from its underlying holdings back into the ETF, rather than paying it out (as with a distributing ETF)'. Regarding accumulation index fund, the investment platforms comments are as follows - ' Reinvests any dividends with the aim of growing your investments over time'. My question is in both these cases 1. Do I need to pay tax on dividends OR 2. Do I need to pay only CGT when I sell the fund and therfore no tax is due on dividends ? Many thanks Regards

Hi,
When it comes to capital gains tax (CGT), UK-domiciled ETFs are treated the same way as other investments like stocks and shares.
Gains from the sale of these ETFs are subject to CGT, provided they exceed the annual exemption limit.
Dividends and interest distributions from UK-domiciled ETFs are also subject to income tax, with different rates depending on the investor’s tax bracket. 
Thankyou.

Having done some further research I think the situation Im describing is basically a foreign DRIP and the notional distributions would therefore count as foreign dividends. HRMC guidance here: https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm03120 Can you confirm I am correct? Thank you

Hi Julius,
If you believe your account matches this then yes.
Thank you.