Tax on savings

Whumpty

eskbanker said:

Whumpty said:

Thanks all, as far as I'm aware there aren't any dividends - I want to invest in Vanguard VWRL (I already have invested here). So am I looking at dividend tax and allowances or savings interest tax and allowances?

The dividends from VWRL are shown at 

Thanks - So my brain is a bit fried with all the info now. Assuming I allocate £20k per year into a taxable trading account via Vanguard and buying into VWRL what tax do you think id be looking at? 
Didn't know about the dividend allowance so just another layer than makes it more confusing to me :S

eskbanker

Whumpty said:

eskbanker said:

Whumpty said:

Thanks all, as far as I'm aware there aren't any dividends - I want to invest in Vanguard VWRL (I already have invested here). So am I looking at dividend tax and allowances or savings interest tax and allowances?

The dividends from VWRL are shown at 

Thanks - So my brain is a bit fried with all the info now. Assuming I allocate £20k per year into a taxable trading account via Vanguard and buying into VWRL what tax do you think id be looking at? 
Didn't know about the dividend allowance so just another layer than makes it more confusing to me :S

If you literally have no income other than the dividends from your VWRL then it'll be a long time before income tax was payable, in that you effectively have your £12,500 personal allowance plus a £2,000 dividend nil-rate band, which would comfortably absorb the annual dividends from a holding in the many hundreds of thousands!

Capital gains tax would potentially be payable only when you eventually sell the investment, if you make chargeable gains above the annual threshold (currently £12,300), although you can mitigate this by staggering sales across multiple tax years.