Skip to main content

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

Posted Fri, 23 Feb 2024 19:30:16 GMT by Ashanth Muthutantri
Hello, could I please reclarify the reinvestment, if say there is a decision to reinvest dividends automatically which is selected at the point of purchasing the units which the the fund manager carries out would the dividends declared and reinvested become taxable?
Posted Tue, 27 Feb 2024 10:39:31 GMT by HMRC Admin 32
Hi Ashanth,

If the company automatically reinvest the dividends then no. If you choose to reinvest you will have already received the payout so these are taxable.

Thank you.
Posted Tue, 09 Apr 2024 17:31:37 GMT by Sky Blue
Hello, Thank you for this thread. Regarding dividends - I would appreciate further clarification on the point regarding an investors 'choice to reinvest' and 'automatic reinvestment'. Where ordinary UK shares are held in a share dealing account (operated by a third party) and that share dealing account allows the investor to select an option to either: a) Receive payment of share dividends or, b) Select an option for 'Automatic Dividend Reinvestment' (ADR) Am I correct in interpreting your last response by HMRC Admin 32, that choosing to select option (b) ADR, means the dividend does not incur tax?

You must be signed in to post in this forum.