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  • RE: Automatically reinvested dividends: how taxed

    Thank you. This is clear and very helpful.
  • Negative interest on foreign deposit

    Good day, I am resident and tax-resident in the UK, but have some foreign short term deposits that earn interest, which I declare on my tax return. In recent years though, these deposits earned negative interest, ie I had to pay. Can I offset these negative interest receipts (=interest payments) from recent years with interest earnings made on same deposits in 23/24 tax year? Thank you.
  • Automatically reinvested dividends: how taxed

    Good day, I have seen similar queries like the one I have on this forum, but still was not certain on UK tax treatment. That is why I am asking my question. From a previous employment, I have a share plan account, where I accumulated vested shares. Dividends are paid out, BUT automatically reinvested and result in additional (fractions of) shares held. I have no choice in this; dividends are automatically reinvested: this is how the share plan account works. From other threads on a similar topic, I understand: 1) There is no tax due on dividend income, when these dividends are automatically reinvested (as described above) 2) Capital gains tax is due when a sale of these shares occurs in the future (if this results in a capital gain) My two questions: A) Is my understanding under 1) and 2) correct? B) In which HMRC manual (chapter etc.) is this explained: both (no) tax on dividend income and capital gains. Thank you for your clarification in advance.