Iii

masonic

xylophone wrote: »

This was before the change of tax treatment on dividends but could apply by analogy to interest paying funds?

I'm assuming they do. I bought into M&G Optimal Income Acc a couple of months before the most recent dividend. Before I can do anything I'll need to extract from III how much was interest and how much equalisation. I assume those with Inc units have the information in their statements.

juliamarsh

xylophone wrote: »

How much of the distribution received was "return of capital" (equalisation) and how much was interest?

I understand the principle of equalisation and interest. What I am saying is that I don't see why III states that you are never entitled to receive a tax reclaim on the first dividend you receive. Not the equalisation part of course, but what about the interest part? In my case, both HL and Fidelity have told me that the entire payment would have consisted of interest and no equalisation because I purchased the units before the ex dividend date. Purchase date 29th July, ex dividend date 1st August, payment date 26th August. Presumably I should be entitled to reclaim for the period 29th July - 26th August at least. Before I go back to them I just want to make sure I get the facts straight and what I wasn't sure of was whether Group 2 units are treated any differently than Group 1 units for tax reclaim, other than the issue of equalisation. I can't find any information about it but I can't see why they should be treated differently. I suspect it is just III talking out of their posterior again and trying to fob me off but I would like to know for certain. The amount of money in this instance is no big deal as it is very small, but the principle is important because next tax year I plan to move the remainder of my holding in this fund from my trading account to my ISA and on £15000 worth the amount could be significant.

juliamarsh

masonic wrote: »

I'm assuming they do. I bought into M&G Optimal Income Acc a couple of months before the most recent dividend. Before I can do anything I'll need to extract from III how much was interest and how much equalisation. I assume those with Inc units have the information in their statements.

Best of luck with that extraction, Masonic!! :rotfl: I shall try to do the same if they still refuse me the tax reclaim when I go back to them. And when it comes to III I wouldn't assume that anybody has the information on their statements! I have begun trawling through the mess up on the commission rebates trying to work out how much they should have paid me, I have got as far as April and my head is spinning.... :mad:

le_loup

I don't think you have been correctly informed. The ex div date is irrelevant. The split is based on when you buy in relation to the interest accrual period. Take a simple case: monthly interest payments on last day of the month, bought on 15th. There, I believe it would be half interest and half equalisation and you will get the full dividend and half the tax repayment.
I do agree with you that whatever III say, you are entitled to some tax repayment even if it's only one days worth assuming you bought on 29th.
Hope my explanation is reasoably clear. They are based upon my experience of fund interest payments with H-L.

xylophone

I do agree with you that whatever III say, you are entitled to some tax repayment even if it's only one days worth assuming you bought on 29th.

I think that the links in my post above support the "split" system.

If this is the case, and a portion is interest, and tax has been deducted from the interest, then a refund is due?

le_loup

xylophone wrote: »

I think that the links in my post above support the "split" system.

They do.
......................

sorcerer

racing_blue wrote: »

I don't get what the problem is. The regulator says pay dividends within 10 days. III pay dividends within 10 days (right? Always have for me.)

Some people seem to want them yesterday, III say look elsewhere & good luck with that. Seems fair. I'd probably say the same if I was running a low cost share holding service for small investors. 20% of your clients cause 80% of your heartache!

If this is true then where are my dividends from December, I believe 10 working days are up. Payment data was 31 December, today is the 14th Jan, that is 10 days and no sign. Looking at my dividends with them for last year some 400 dividends payments recived, about 20% were actually paid in 10 working days from payment date. So a 20% success rate is not what I consider to be good.


Meanwhile at AJ Bell, most of my dividends are paid on the same day, or sometimes 1 or 2 days later. And it doesn't cost me too much more than II.

juliamarsh

le_loup wrote: »

I do agree with you that whatever III say, you are entitled to some tax repayment even if it's only one days worth assuming you bought on 29th./QUOTE]

I guess what I need to do is find out when the accounting period for that fund runs from. If say it is the 1st -31st July then I shan't bother obviously arguing over a tax reclaim for 3 days interest from 29th -31st July. But if the accounting period runs from the payment date of 26th of the month then it is quite another matter.

JenniferK

sorcerer wrote: »

Meanwhile at AJ Bell, most of my dividends are paid on the same day, or sometimes 1 or 2 days later. And it doesn't cost me too much more than II.

I would also say that at X-O share dividends are paid on the due date (III always late). Cost of holding on the X-O platform - nil. Dealing cost £5.95. So whats III's excuse?

juliamarsh

Shock...the carrier pigeon has recovered and has at last flown in with my Invesco Perpetual dividend!! :j One less phonecall to make and listen to that blasted music!!