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Tax on Fund dividends
StevieJ
Posts: 20,174 Forumite
Hi,
Hope for some enlightenment.
I sold a tracker fund in Feb 07 , I noticed in my records that I have a tax voucher with the following details Final dividend period to 28/2/07 Date of payment 30/4/2007. The fund was accumulation so I never actualy received a dividend although this may have been rolled up in amount I received for the sale.
The question is, should this be included as income for 2006/7 or 2007/8 tax years bearing in mind that dividend income is taxed based on when actually received.
Grateful for any info
Hope for some enlightenment.
I sold a tracker fund in Feb 07 , I noticed in my records that I have a tax voucher with the following details Final dividend period to 28/2/07 Date of payment 30/4/2007. The fund was accumulation so I never actualy received a dividend although this may have been rolled up in amount I received for the sale.
The question is, should this be included as income for 2006/7 or 2007/8 tax years bearing in mind that dividend income is taxed based on when actually received.
Grateful for any info
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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Comments
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You are correct.The fund was accumulation so I never actualy received a dividend although this may have been rolled up in amount I received for the sale.
It's when the dividend is paid to you i.e. in the 2007/8 tax year.The question is, should this be included as income for 2006/7 or 2007/8 tax years bearing in mind that dividend income is taxed based on when actually received.
Grateful for any info
There is nothing more to pay for a basic rate taxpayer (10% has been taken off) but if you are a higher rate taxpayer there will be an additional 22.5% to pay.0 -
Thanks Baby Boomer.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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baby_boomer wrote: »There is nothing more to pay for a basic rate taxpayer (10% has been taken off) but if you are a higher rate taxpayer there will be an additional 22.5% to pay.
Actually you receive a 10% credit which pays the tax if you are on basic rate and a higher rate taxpayer has to pay an additional 25%.Trying to keep it simple...
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EdInvestor wrote: »and a higher rate taxpayer has to pay an additional 25%.
Depends on how you calculate it.
It's 25% of the net dividend or 22.5% of the gross dividend (dividend plus tax credit).
On the tax return it's the gross dividend that the tax calculation is done on.0
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