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Posted Wed, 27 Apr 2022 05:04:31 GMT by Ka Luk
Hi HMRC, I will receive foreign REIT dividend distribution soon. The dividend will comprise two components: 1. Distribution out of income (says, total amount is £100) 2. Distribution out of capital. (says, total amount is £80) May I know if I need declare dividend is £100 (income only) or £ £180 (income + capital)? Reason to ask this question, capital is part of amount on my investment. It does not any kind of income. Thank you. Regards, kf
Posted Tue, 03 May 2022 14:11:13 GMT by HMRC Admin 19

Please declare the full amount of the REIT dividend distribution, as shown on the relevant dividend voucher.

Thank you.
Posted Wed, 04 May 2022 05:05:40 GMT by Ka Luk
Hi, Thank you for your reply. I have further question. 1. Can I deduct the expense generate the dividend? For example, transaction fee, margin loan interest (if any) ...etc 2. Will the dividend allowance will calculate by HMRC after I declare or I should deduct the allowance before declare it? Thank you. Regards, kf
Posted Fri, 06 May 2022 10:14:19 GMT by HMRC Admin 19

The income charged is the full amount or value of the dividends paid and other distributions made in the tax year, you can see more information here:

SAIM5020 - Dividends and other company distributions: the charge to tax on UK dividends etc.

No expenses are allowable. You should declare the full amount of the dividend. The calculation will take into account the dividend allowance.

Thank you.

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