Excess of reportable income over distributions

bobhopeful

I have downloaded from Vanguard their document UK Reporting Fund Status (UKRFS) which shows Excess of reportable income over distributions. It only lists ETFs. Is this because excess of reportable income over distributions is not something that occurs with Funds?

I am making some choices for a long-term portfolio of low cost index trackers, maybe 4 at most one global, and an allocation to EM, small cap, and high yield. I don't want everything with one platform or one fund manager Vanguard (after Beaufort Securities I want to spread assets).

But in making my choices I want to also minimizing the complexity of tax calculations when deciding between funds which are UK / Ireland (offshore), Fund or ETF, Income or Accumulation. I will have SIPP, ISA and taxable, but I also need to report my income for a tax return outside the UK, so it is important that I can calculate income from dividend distributions even within a SIPP or ISA (because this income is tax exempt in the UK fund platforms don't provide details and the tax certificate doesn't show it either). So again, being able to work out distributions easily may influence the choice.

Any comments or suggestions welcome.

masonic

Covered quite nicely here: http://monevator.com/excess-reportable-income/

It applies to non-UK domiciled funds.

bobhopeful

Thanks for the link masonic.

This is what I understand from the information provided.

1. Excess reportable income can apply to a Fund or an ETF.

2. Excess reportable income only applies to "offshore" funds/ETFs not UK domiciled funds/ETFs.

3. For tax purposes the date you notionally receive the income is 6 months after the fund's accounting year end date -
so this date will differ from fund to fund.

4. Excess reportable income is separate from dividend income calculations for distributions received Income or Acc funds or ETFs.

5. Potential tax liability and calculations for divided distributions apply to both UK and off-shore funds/ETFs.

6. For dividend distributions the income is deemed as being received at the ex-Div date.

So there are potentially two separate calculations for taxable income to be done each year?