Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 17 Dec 2023 10:42:14 GMT by
Dear team from HMRC. I hope this message finds you well. I currently need to prepare a self assesment return because I meet the criteria to declare capital gains tax. Like many people in the UK, I use Degiro as a broker to buy and sell shares. It has been flagged to me recently, that the unallocated cash that a client holds in an account in Degiro is immediately invested in a market money fund, in my case specifically it is in: Morgan Stanley GBP Liquidity Fund, Symbol | [details removed by admin] The fund is located in the list of reporting funds: And therefore it should be subject to the guidance Guidance HS265 Offshore funds My first question, the guidance HS265 specifies that the income from a reporting fund could be considered: interest, dividend or miscellaneous income. I am inclined to think this is classified as dividend since in my statements I can see either “fund distributions” or “dividend”. In case of doubt which one should I choose? Could I receive a penalty by choosing “dividend” when in the opinion of HMRC this income could be classified as “interest” or “miscellaneos income”? My second question, the amounts that I get from it are negligible (less than 10 GBP per taxyear). Is there any kind of threshold which would allow me not to declare these small amounts? My third question, in the future I might not need to do self assessment if I (regrettably) keep losing money through buying and selling shares. As long as I use this fund, do I need to keep preparing self assessment just to declare these small amounts? Or is there any other way to declare them easily? Kind regards.
Posted Thu, 21 Dec 2023 11:53:06 GMT by HMRC Admin 25
Hi Favreau,
If the fund states dividend, you will report it as such.
If already completing a tax return, you still need to declare it as you need to declare all your income.
As it will be dividends, you would need to consider the other dividends.
Thank you. 

You must be signed in to post in this forum.