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  • RE: Dividends from Mutual Funds which are reinvested as units of the fund

    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?