Julius
-
RE: Tax on accumulating ETFs
Having done some further research I think the situation Im describing is a foreign DRIP and the notional distribution hence counts as foreign dividend income, HMRC guidance here: https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm03120 Can you confirm my understanding is correct? Thanks -
RE: Dividend tax on accumulating ETF
Having done some further research I think the situation Im describing is basically a foreign DRIP and the notional distributions would therefore count as foreign dividends. HRMC guidance here: https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm03120 Can you confirm I am correct? Thank you -
Tax on accumulating ETFs
Hi, I own an accumulating ETF such as this one in a general investment account (outside of ISA/SIPP). The fund automatically reinvests any cash dividends it receives from the stocks it owns. There is no choice for me as an investor. The fund has UK reporting status in case that matters. I've seen conflicting answers on this forum so I wanted to double check: what are my tax obligations? Do I have to declare the "distributions" as dividend income each year, even though I dont receive any cash? If that is the case, my understansing is that what I have to report is the so-called Excess Reportable Income (ERI). I looked into this and the problem here is that while the fund provider does give an annual ERI number, their reporting period is from August-1 to Jul-31 and hence out of sync with the UK tax year. So how can I find out the correct ERI?
[External link removed - HMRC Admin]
