Tax confusions for Income Funds

sorcerer

Hi Everyone

I am thinking of holding some Income based High Yields Funds in my share account (non ISA). Does anybody know if these are taxed, for example do I declare them to the HMRC, or are they part of CGT, or is income earned from them taken out by the Fund Manager.

Thanks

le_loup

They are taxed at source. If you are a SR tax payer there is nothing more to pay. If HR, then you need to declare the income.

John_Pierpoint

There is a ridiculous (in my opinion) option for investment of sums of 50,000+ called a Qualifying Time Deposit.
This pays interest gross (but the interest is still taxable) and can be a great cause of confusion for those with a lump sum to invest.

This is not to be confused with a "bond" sold by insurance companies which can pay an "income" of 5% that counts as capital and is not taxed.

No wonder we have the world's largest tax code.