We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
New dividend taxation rules and unit trusts
GoGas
Posts: 73 Forumite
Have 7 figure portfolio of 7IM unit trusts mainly accumulation funds. These funds are growth so 65%equity but global. Currently yield is about 0.6%.
Does anybody know if the new way dividends will be taxed will affect the accumulation units?
Thanks
Does anybody know if the new way dividends will be taxed will affect the accumulation units?
Thanks
0
Comments
-
Dividends in unwrapped unit trusts (for both accumulation and income units) will be taxable if greater than the new £5,000 annual allowance.0
-
Have 7 figure portfolio of 7IM unit trusts mainly accumulation funds. These funds are growth so 65%equity but global. Currently yield is about 0.6%.
Does anybody know if the new way dividends will be taxed will affect the accumulation units?
Thanks
That's a very low yield but potentially a substantial sum, £6k on £1 million. If unwrapped then £1k will be subject to tax, if they are unwrapped then they will always have been subject to tax, though no additional tax due if only a standard rate taxpayer. The fact they are accumulation makes no difference to the tax treatment, they will have been liable to additional tax if you are. A higher or additional rate taxpayer, which should be declared on your tax return.0 -
Thanks. Low yield is as no income required from it. Unwrapped as max ISA and pension allowance have been used (reached LTA).0
-
I'm intrigued as to how this will affect me also. ISA and SIPP both fully loaded (as is the DWs).
We'll have to split our taxable accounts now too.
Are there any share types we can invest in that don't provide a dividend?0 -
-
True and I guess I'll have to go through everything in a lot more detail before I even consider that.0
-
I guess we can expect to see a lot more products coming along that bear a striking resemblance to zeros.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Seeing a few suggestions that the investment bond wrapper may come back into play again.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
Yes, I was musing on how investment bonds might to start having a role beyond the traditional one of earning IFAs a few bob in commission.
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards