Self Assessment Tax Return and where a dividend payment from a GIA goes

LShackleton1

Hi, I am completing my first tax return and have a dividend amount of under 2K to include from a GIA I have. I am unsure however of which box to include this information. Does the amount go in Box 4, dividend from UK companies or Box 5, other dividends? Thanks in advance for any advice. 

eskbanker

LShackleton1 said:

Hi, I am completing my first tax return and have a dividend amount of under 2K to include from a GIA I have. I am unsure however of which box to include this information. Does the amount go in Box 4, dividend from UK companies or Box 5, other dividends? Thanks in advance for any advice.

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.

LShackleton1

Yes a UK company. Thought a GIA was the same as a unit trust or investment trust? 

LShackleton1

My tax voucher says UK dividends 

eskbanker

LShackleton1 said:

Yes a UK company. Thought a GIA was the same as a unit trust or investment trust? 

A GIA is simply the wrapper account within which you hold actual investments, which in turn could be unit trusts or investment trusts, but also shares or funds.  Perhaps it's time to say exactly what investment you're talking about rather than playing guessing games?

Thrugelmir

GIA simply stands for General Investment Account to distinguish it from an ISA or a SIPP. 

lindabea

eskbanker said:

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

Shouldn't you also not include the equalisation payments for group 2 income units?  

ColdIron

Why? They are not dividends, they are a return of capital. The entire purpose of equalisation is to avoid paying tax on dividends that you purchased and did not earn

lindabea

ColdIron said:

Why? They are not dividends, they are a return of capital. The entire purpose of equalisation is to avoid paying tax on dividends that you purchased and did not earn

I think that is what I'm saying. Your comment is confusing me.  From my previous threads, I thought the whole idea of equalisation is to reduce your dividend payment by the equalisation payment as it is a return of capital. I asked the question as Estbanker ONLY made reference to accumulation units and wanted to know if the same applies to income units 

ColdIron

With income units you will have been paid a dividend as cash so it's obvious that it should be declared. The note about accumulation in the first sentence is to remind you not to overlook dividends retained and not paid out, they are still dividends and must be declared. The second sentence regarding equalisation applies to both Inc and Acc units. Equalisations are never dividends

Edit: Having re read your comment I think I have read it in a way that you didn't intend (Shouldn't you also not)

You are correct: you should not include the equalisation payments for group 2 income units

lindabea

ColdIron Thank you again for your further clarification.  I was worried that everything I learnt so far, was completely wrong.   Sorry if I confused you with my double negative comment.