Delays for SIPP Dividend tax reclaim

banjodog

My SIPP generates a monthly dividend.
My SIPP provider says that they are still awaiting payment of Dividend tax reclaims on my SIPP dating back to July 2016. I understand that HRMC will only accept one claim at a time so claims for subsequent months have not even been submitted to HMRC!. This is obviously affecting my monthly income stream.
Is it the same for everyone or the fault of my SIPP provider?


Tax refunds on dividends in my ISA(with another provider) are paid monthly...so why is there a problem with reclaiming dividend tax for my SIPP?

le_loup

Is your provider III?

Linton

Are you sure that these are "interest" rather than "dividends"? You get a tax refund on interest but not on dividends as dividends arent taxed in the first place. Funds which hold both bonds and shares must categorise the total payment as one thing or the other, sometimes the categorisation changes. Sometimes some payments are classed as interest and some as dividends during the same year.

Apologies if you are already aware of this complication, but some people arent.

westv

le_loup wrote: »

Is your provider III?

I first read that as "ill" rather than "III"!

xylophone

I first read that as "ill" rather than "III"!

No, that's just the effect they had on le loup.....:)

I have been with II (ISA) for a few years now and find that tax refunds on the PIDS in my REITS arrive about eight weeks after the payment of the distribution.

My "interest" OEICS pay gross.

Linton

xylophone wrote: »

No, that's just the effect they had on le loup.....:)

I have been with II (ISA) for a few years now and find that tax refunds on the PIDS in my REITS arrive about eight weeks after the payment of the distribution.

My "interest" OEICS pay gross.

That's interesting. My understanding was that the banks were given permission to pay interest gross but that wasnt extended to other financial bodies.

However a bit of subsequent googling tells me that gross interest is now in place for OEICs as from April 2017. But withholding of basic rate income tax still applies to income from certain direct property funds, as rents are regarded as income. So the OPs problem should be solved.

le_loup

xylophone wrote: »

No, that's just the effect they had on le loup.....:)

Too true .............

banjodog

You are correct, it is now being pad gross since April 2017, but I am still waiting for the tax to be refunded on "interest" earned previously, back to July 2016

xylophone

That's interesting. My understanding was that the banks were given permission to pay interest gross but that wasnt extended to other financial bodies.

However a bit of subsequent googling tells me that gross interest is now in place for OEICs as from April 2017.

Even before April this year I held the "gross" class in my ISA OEICS.