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Posted Fri, 07 Oct 2022 23:29:57 GMT by C Cheng
Hi HRMC I have a Singapore ETF which has quarterly dividend but in two types: 1. Ordinary Dividend 2. Return of Capital I receive both in cash anyway. It's clear that the "Ordinary Dividend" will be reported as dividend income. But for the "Return of Capital", should I report it as dividend as well or use it to reduce my purchasing cost and report it as CPG tax when i sell it ? Thanks.
Posted Thu, 13 Oct 2022 13:24:08 GMT by HMRC Admin 20
Hi C Cheng,

ETF is designed for investors seeking dividends and capital gains, so they will attract capital gains.

Thank you.
Posted Thu, 13 Oct 2022 15:16:27 GMT by C Cheng
Hi HMRC, I understand it will attract capital gains when I sell it. But what I am talking here is the quarterly distribution from the ETF as cash and part of them are classified as "Return of Capital". Should I use this part to adjust the cost basis of the ETF and report capital gain in the future when I sell it?
Posted Tue, 01 Nov 2022 08:13:53 GMT by HMRC Admin 19
Hi,

The guidance does not cover specific investments so we can only refer you to the guidance to enable you to self assess as we cannot give clearance before a capital gain is reported.

You can see the following guidance which covers shares and unit trusts and the different types of companies and organisations.  

CG56800C - Capital Gains Manual: Shares and Securities: Particular types of company/organisation: contents

HS284 Shares and Capital Gains Tax (2019)

You investment provider can confirm your type of investment. 

Thank you 

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