Skip to main content

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

Posted Wed, 04 Oct 2023 11:08:36 GMT by kevin mcbride
I am interested to find out the tax treatment of income etf such as JPM GBP Ultra-Short Income UCITS ETF - GBP (acc). This is accumulating. Are the gains taxed as dividends, interest, or CG on disposal? (This etf is domiciled in Ireland, I don't know if this makes any difference. It is reporting). And does it make any difference if the etf is distribution?
Posted Mon, 09 Oct 2023 12:29:10 GMT by HMRC Admin 32

An Exchange Traded Fund (ETF) is a form of Collective Investment Scheme and contains a pool of investments (‘the scheme property’) derived from the contributions of investors.

STSM101060 - Introduction to Collective Investment Schemes: Exchange Traded Fund

The taxation of ETF's is determined by the the asset class. Bonds are subject to Income Tax, with equities and commodities being subject to dividend tax. All three are subject to Capital Gains Tax.

Thank you.
Posted Tue, 27 Feb 2024 12:14:19 GMT by ff9991
Hi, Can I please confirm if a Bond ETF sold at a gain or at a loss would be considered as part of the taxable income for the Income Tax or as a Capital Gain like a share sale?
Posted Wed, 28 Feb 2024 09:51:50 GMT by HMRC Admin 25
Hi ff9991,
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.
Thank you. 


You must be signed in to post in this forum.