Dividend Allowance on Tax Return

nirish

Does the same process apply to the £12300 Capital Gains Tax "Allowance"?
Will I be effectively taxed 20% on this too if it falls between £100k and £125k income or is it entirely separate?

eskbanker

nirish said:

Does the same process apply to the £12300 Capital Gains Tax "Allowance"?
Will I be effectively taxed 20% on this too if it falls between £100k and £125k income or is it entirely separate?

Capital gains tax and income tax are unrelated, so the former is only charged on asset disposals exceeding the annual £12,300 threshold, whereas the latter is applied to actual income, whether earned via salary/pension, or savings interest, or dividends.

LShackleton1

I’m looking to complete my first tax return and I need to add a dividend payment for under 2K from a GIA. Does this amount go in Box 4 Dividends from UK companies or Box 5 other dividends, thanks 

eskbanker

LShackleton1 said:

I’m looking to complete my first tax return and I need to add a dividend payment for under 2K from a GIA. Does this amount go in Box 4 Dividends from UK companies or Box 5 other dividends, thanks 

Is it a dividend from a UK company?!

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874084/SA150_English_Notes.pdf

Box 4 Dividends from UK companies – the amount received 

Your dividend voucher will show your shares in the company, the dividend rate and dividend payable. 

Put the total dividend payments in box 4. Include any dividends from employee share schemes. Do not include: 

• Property Income Distributions from Real Estate Investment Trusts (REITs) or Property Authorised Investment Funds (PAIFs) – these go in box 17, and the tax taken off in box 19 

• stock dividends or non-qualifying dividends – these go in the ‘Additional information’ pages 

Box 5 Other dividends – the amounts received 

This includes dividend distributions from authorised unit trusts, open-ended investment companies, and investment trusts. Put the amount on your dividend voucher in box 5. 

Include in box 5 any dividend from accumulation units or shares that are automatically reinvested. Do not include any ‘equalisation’ amounts.

Edit: discussion continued in dedicated thread: https://forums.moneysavingexpert.com/discussion/6218120/self-assessment-tax-return-and-where-a-dividend-payment-from-a-gia-goes#latest

LShackleton1

Yes a UK company. Am unsure as I thought a GIA was the same as investment trust?

bowlhead99

LShackleton1 said:

Yes a UK company. Am unsure as I thought a GIA was the same as investment trust?

A general investment account is simply a financial account that you hold with a stockbroker or investment platform that does not have any special tax-protective properties (unlike a pension account or an ISA).  

Using money that you have in your general investment account you can buy and sell shares in companies, investment trusts, ETFs, bonds, shares or units in open-ended investment funds etc, whatever the broker or investment platform chooses to offer to you.

krish123

how do the rules differ if your are receiving dividends from an ISA account? do you have to declare this if its under £2000?

Aceace

krish123 said:

how do the rules differ if your are receiving dividends from an ISA account? do you have to declare this if its under £2000?

You don't need to declare anything from an ISA account. Everything covered by an ISA wrapper is tax free. 

krish123

Aceace said:

krish123 said:

how do the rules differ if your are receiving dividends from an ISA account? do you have to declare this if its under £2000?

You don't need to declare anything from an ISA account. Everything covered by an ISA wrapper is tax free. 

oh really? even if the divi amount exceeds £2000?

ColdIron

What do you suppose the purpose of an ISA is?