Is a platform obliged to provide a CTC?

Voyager2002

I hold some securities with Fineco (UK). I am now doing my tax return and the form asks for information like tax paid on foreign dividends that I would expect to get from the Consolidated Tax Certificate. I could not find one in my Fineco account and they say that they do not provide them.


So the obvious questions: is that something they have to provide; and will I get into trouble for failing to give HMRC this information?


Thanks for any thoughts on this.

dunstonh

Is this for unwrapped holdings?

Voyager2002

dunstonh wrote: »

Is this for unwrapped holdings?

Yes, I think so. Mainly ETFs traded in New York and Milan.

eskbanker

Voyager2002 wrote: »

I hold some securities with Fineco (UK). I am now doing my tax return and the form asks for information like tax paid on foreign dividends that I would expect to get from the Consolidated Tax Certificate. I could not find one in my Fineco account and they say that they do not provide them.


So the obvious questions: is that something they have to provide; and will I get into trouble for failing to give HMRC this information?


Thanks for any thoughts on this.

Are you saying that they provide no information whatsoever about dividends and their taxation, in other monthly/quarterly/ad hoc documentation such as tax vouchers or other statements issued during the year? Their failure to summarise this in a convenient annual CTC form is one thing but that doesn't justify not declaring your dividends and associated tax to HMRC at all....

Voyager2002

eskbanker wrote: »

Are you saying that they provide no information whatsoever about dividends and their taxation, in other monthly/quarterly/ad hoc documentation such as tax vouchers or other statements issued during the year? Their failure to summarise this in a convenient annual CTC form is one thing but that doesn't justify not declaring your dividends and associated tax to HMRC at all....

I see credits to my account in the form of after-tax dividends... at least, I assume that is what they are since US dividends are taxed at source. No, they do not tell me how much tax was deducted before I saw them. And no, no tax vouchers.

londoninvestor

Voyager2002 wrote: »

I see credits to my account in the form of after-tax dividends... at least, I assume that is what they are since US dividends are taxed at source.

Whether they're completely "after-tax" depends on your tax position. US dividends have already had a withholding tax of 15% paid on them (assuming you've completed a W8-BEN). If your rate of UK dividend tax is higher than that though (i.e. you have over £5000 of dividends [£2000 from this tax year onwards] and you pay higher rate income tax) then you'll have an additional UK tax liability on the dividends.

londoninvestor

Back to your original question, it's hard to find a definitive answer, but here's something that may be useful from HMRC.

This is in the context of investment trusts, but the gist is there's a standard template that the nominee (i.e. platform) should use for a consolidated tax voucher, and they need HMRC's approval to do otherwise. (If I'm reading correctly - I don't find the HMRC material about funds etc the easiest to follow.)

Might be worth giving HMRC a call to understand how best to proceed?

eskbanker

Voyager2002 wrote: »

I see credits to my account in the form of after-tax dividends... at least, I assume that is what they are since US dividends are taxed at source. No, they do not tell me how much tax was deducted before I saw them. And no, no tax vouchers.

Odd, all of the platforms I use make that information available in multiple formats, but if the only visibility you have is a net figure landing in your account then it sounds like you'll need to work out the tax situation yourself, by looking up the published dividend data for the securities, multiplying by units held and converting currency if necessary (based on the exchange rate on the day), to establish a gross figure comparable to the net one you'll have seen....

I can't believe you're the only one in this situation though, surely every UK investor using them must face the same issue if their platform is fundamentally deficient?