Tax treatment OEIC

Fisher_man

Guys,

Short question. If I have got shares in a onshore equity OEIC that is not distribution dividends (so accumulating, which means I do not get dividends as fund investor), do I have to report any 'reporting' dividends (as is the case for offshore funds) and do I have do make any correction for underlying dividends (from the underlying companies to the OEIC) when calculating Capital Gain Taxs when selling my shares?

Would be great if anyone knows the answer!

xylophone

http://www.hmrc.gov.uk/individuals/savings-income.htm

barak

Fisher_man wrote: »

Guys,
Short question. If I have got shares in a onshore equity OEIC that is not distribution dividends (so accumulating, which means I do not get dividends as fund investor), do I have to report any 'reporting' dividends (as is the case for offshore funds).....

Yes, is the answer to that. Don't ask me about CGT - I organise my affairs to avoid it wherever possible, which is almost invariably.

Aegis

Fisher_man wrote: »

Guys,

Short question. If I have got shares in a onshore equity OEIC that is not distribution dividends (so accumulating, which means I do not get dividends as fund investor), do I have to report any 'reporting' dividends (as is the case for offshore funds) and do I have do make any correction for underlying dividends (from the underlying companies to the OEIC) when calculating Capital Gain Taxs when selling my shares?

Would be great if anyone knows the answer!

You need to report the dividends that are reinvested on your behalf on your self assessment form, assuming you are a higher rate taxpayer. The basic rate obligation is already satisfied at source.

You don't have to worry about the dividends of the companies that the OEIC invests in, only the declared dividend that would be payable if you were holding income units instead of accumulation. These should be stated clearly if you ask for a tax voucher at the end of each year.

As a result of the above, the dividends can be deducted from the sale price when calculating capital gains tax at the point of sale, as these count as miniature purchases.

Hope that helps, but if in doubt speak to an/your accountant.

Fisher_man

Many thanks for the reply.
@barak and Aegis
The fund itself is accumulating in the sense that doesn't distribute and for that reason I do not know the amount of money that is 'reinvested automatically'. I can, however, find a 'distributed' and 'reinvested' section in the Annual Report of the fund so I think you are pointing at the sum of those!

jem16

Fisher_man wrote: »

Many thanks for the reply.
@barak and Aegis
The fund itself is accumulating in the sense that doesn't distribute and for that reason I do not know the amount of money that is 'reinvested automatically'. I can, however, find a 'distributed' and 'reinvested' section in the Annual Report of the fund so I think you are pointing at the sum of those!

If the fund has a dividend yield you should receive a tax certificate for it. What is the name of the fund?

Aegis

Fisher_man wrote: »

Many thanks for the reply.
@barak and Aegis
The fund itself is accumulating in the sense that doesn't distribute and for that reason I do not know the amount of money that is 'reinvested automatically'. I can, however, find a 'distributed' and 'reinvested' section in the Annual Report of the fund so I think you are pointing at the sum of those!

All you need to do is call the platform you've invested through and ask them to provide you with tax certificates at the end of each year. These will clearly state what you need to add to your self assessment forms. The distributed and reinvested section of the annual report is highly likely to involve a different sum due to internal costs and miscellaneous expenses that may well be met from dividend payments.

Fisher_man

he ISIN code is GB0030932676 (M&G Global Basics). I don't get dividends so won't get a tax certificate and I dont get the end of the year certifcates because I hold the fund on an offshore account.

sorcerer

I am not sure this is write, because I have lots of accumalation funds, and they have never appeared on my tax certificate with H&L. Only ones that payout a dividend or income.

Aegis

sorcerer wrote: »

I am not sure this is write, because I have lots of accumalation funds, and they have never appeared on my tax certificate with H&L. Only ones that payout a dividend or income.

They should, unless there are no dividends available at all in any share class (i.e. there may not be with accumulation units where no equivalent income unit exists). It might be worth calling up about that one, as tax certificates I've seen from platforms have all had the notional dividends added for accumulation units.

barak

Fisher_man - According to FE Trustnet there don't appear to have been any 'dividends/distributions' for your version of the fund - M&G Global Basics A Acc EUR - at least since 31st October 2010 which is probably why you don't have anything to report.

http://www.trustnetoffshore.com/Factsheets/Factsheet.aspx?univ=DC&fundCode=MGAU&typeCode=FMGGBAA&pagetype=dividends