Iii

le_loup

Ah, if you are not due any dividends, it's possible you will get some! Possibly some tax credits as well. BONUS.






Always assuming they have not accidently sold all your holding.

xylophone

The relative did receive the F&C payment....nearly four weeks late!
But I have received the tax refund on my REIT PID, although I did query where it was when it had not arrived after the same interval as on a previous occasion.

Nocto

le_loup wrote: »

Ah, if you are not due any dividends, it's possible you will get some! Possibly some tax credits as well. BONUS.

Ooooo - I hadn’t thought of that!

juliamarsh

JenniferK wrote: »

What my research shows is that the performance of clean funds easily beats that of the equivalent dirty fund even after allowing for the rebates via III. The conclusion is therefore that it is better to be in clean funds rather than receiving rebates via III.

Interestingly having just checked the 3 funds I have converted I have found the clean versions are worth pretty much the same as the dirty ones and in the case of Fidelity Moneybuilder Income slightly less, plus I have lost the rebate. Makes me think I might hold fire on selling any more in the new tax year and make the most of the rebates while they last! As to my ongoing issues regarding tax reclaim within an ISA and Group 1 and Group 2 units, I have today received yet another message from III that is as clear as mud. First they told me they can't reclaim tax on Group 2 units because they always pay gross (which doesn't sound right to me in any case) and then when giving me the breakdown of the figures I had asked for they stated that tax had been deducted at 20%! They said that the units change from Group 2 to Group 1 when the next accounting period begins, they told me the accounting period ran from 30th June - 31st July, and since I purchased the units on 29th July and the new accounting period began on 1st August, as I understand it I would have been entitled to reclaim the tax on the monthly dividend that was paid at the end of August. Wonder if they will see it that way however...

You wouldn't think it was possible but every new message I get from them makes me more and more alarmed about their lack of knowledge and competence.

Nocto

I don’t think II are the only ones who make mistakes with Group 1, Group 2 units and Equalisation.

My tax voucher last year from Cavendish / Fidelity showed Group 2 units and equalisation figures for funds which I have held unchanged for a number of years.

My transfer to Cavendish completed end April 2013. My 2013 - 14 tax voucher showed Group 2 units and an equalisation for the entire holding of three funds, for their first dividend in the tax year (which was also the first dividend received from Cavendish after transfer). The other funds I transferred in were all Group 1 & no equalisation for all dividends.

Even not fully understanding equalisation I realised that this can’t be right. Either all my holdings should be Group 2 with equalisation for a period, or none of them. I didn’t buy any new units, only transferred them to Cavendish.

I called Cavendish and tried to explain that I thought there was a mistake. Well, the lady I spoke to was honest to the point of rudeness when she told me, “I don’t know what on earth you’re talking about, you’ll have to call Fidelity!”.

When I called Fidelity they weren’t much more helpful. No one I spoke to seemed to have any greater knowledge of equalisation than me (which isn’t much!), though they did agree that it seemed a little odd to have equalisation on some funds but not others, when they were all transferred in at the same time and unchanged. They were quick to point out that it didn’t make any difference to the amount of the dividend which I received, and I agreed that as they were all equity funds from which I can’t claim any tax back, it didn’t really make any difference.

Anyway, I gave up. I’m pretty certain that a transfer shouldn’t trigger an equalisation, and if it does then it should have applied to all my holdings. As my holdings with II aren’t in any sort of wrap I won’t know if it’s happened again until I receive my tax voucher.

Even if it doesn’t make any difference to me financially, I find mistakes annoying!

xylophone

http://www.incademy.com/courses/unit-trusts-and-oeics/tax-treatment-of-coupons-from-non-equity-funds/16/1007/10002

http://www.oldmutualwealth.co.uk/Documents/Literature%20Library/Platform/Collective%20Retirement%20Account/OMW_PDF6600_A_guide_to_your_tax_voucher.pdf


The tax voucher should be split to show which part of the distribution is return of capital and which is income - if tax has been deducted from the income then it is potentially repayable, depending on whether interest or dividend?

Nocto

Thanks for the useful links xylophone.

I think Cavendish / Fidelity made a mistake on last years tax voucher. But as they were equity funds I guess it’s irrelevant.

Given II’s recent track record for mistakes, I do hope that this years tax voucher is correct for my bond funds… :undecided (I reclaim the tax on bond interest)

xylophone

Given II’s recent track record for mistakes, I do hope that this years tax voucher is correct for my bond funds… (I reclaim the tax on bond interest)

Hope springs eternal...:)

My REIT refunds have turned up and been accurate.

juliamarsh

xylophone wrote: »

The tax voucher should be split to show which part of the distribution is return of capital and which is income - if tax has been deducted from the income then it is potentially repayable, depending on whether interest or dividend?

I won't get a tax voucher from them because the payment I am querying is held in my ISA so doesn't need to be reported to HMRC. I have asked them for a breakdown of what proportion of the payment was interest and what proportion was equalisation, which they gave me today, although it doesn't make sense according to the point during the accounting period at which I made the purchase. Tax appears to have been deducted but they say they won't reclaim it. The amount is small and not worth quibbling over but the principle is important because my plan was to sell the rest of my holding in my trading account and repurchase within my ISA in the new tax year. That will be worth a lot more.

sorcerer

Has anybody had dividends that reached payment day at the end of January paid to them yet.


I am in the middle of a transfer to AJ Bell and i am still missing 9 dividends, the rest turned up at AJ Bell, so I am assuming the rest are still with Interactive Investor... i hope.