Reclaiming tax paid

50Twuncle

My wife has an OEIC / Unit Trust fund with Cofunds from which she took about £1000 in dividends last FY - She paid 20% income tax on this - she does not earn enough to take her into even the lowest rate of income tax - can she reclaim the tax paid from the taxman ?

jem16

21Twinkle wrote: »

My wife has an OEIC / Unit Trust fund with Cofunds from which she took about £1000 in dividends last FY - She paid 20% income tax on this - she does not earn enough to take her into even the lowest rate of income tax - can she reclaim the tax paid from the taxman ?

Can you clarify the specific fund? Most funds paying dividends cannot be reclaimed. It would only be a fixed interest fund that could be reclaimed.

50Twuncle

jem16 wrote: »

Can you clarify the specific fund? Most funds paying dividends cannot be reclaimed. It would only be a fixed interest fund that could be reclaimed.

M&G corporate bond A fund and Invesco Perpetual Monthly Income Plus Fund Inc
Thanks

jem16

21Twinkle wrote: »

M&G corporate bond A fund and Invesco Perpetual Monthly Income Plus Fund Inc
Thanks

As both pay interest then yes it can be claimed back. I assume it's not in an ISA as the provider would normally claim it back for you?

50Twuncle

jem16 wrote: »

As both pay interest then yes it can be claimed back. I assume it's not in an ISA as the provider would normally claim it back for you?

Thanks - from HMRC or from Cofunds ?
She has ISA's also from both these funds - is there anything that she can reclaim on the ISA's ?
I had assumed that she did not pay any tax on the ISA's in any case ?

jem16

21Twinkle wrote: »

Thanks - from HMRC or from Cofunds ?

If not in an ISA then you reclaim the tax from HMRC.

ColdIron

21Twinkle wrote: »

She has ISA's also from both these funds - is there anything that she can reclaim on the ISA's ?

If she has an ISA then she has paid no tax directly, consequently she has nothing to reclaim

50Twuncle

ColdIron wrote: »

If she has an ISA then she has paid no tax directly, consequently she has nothing to reclaim

Thanks - that is what I had assumed !!

jem16

21Twinkle wrote: »

She has ISA's also from both these funds - is there anything that she can reclaim on the ISA's ?
I had assumed that she did not pay any tax on the ISA's in any case ?

The tax within the ISAs is reclaimed by Cofunds so you do not need to do anything at all.

When you are working out whether your wife can reclaim the non-ISA interest, you will need to add up her total income including gross interest and dividend payments plus tax credits. You cannot just use what she earns.

xylophone

http://www.hmrc.gov.uk/manuals/saimmanual/saim6030.htm
http://www.hmrc.gov.uk/taxon/worked-examples.htm
http://www.hmrc.gov.uk/forms/r40.PDF

50Twuncle

Thanks - printed off the form and sending it off tomorroe