Consolidated Tax Certificate Query

daveren88

Hi All

I'm hoping someone could give me some friendly advice regarding tax on my Hargreaves Lansdown investment account. I opened an account 12 months ago and invested 5k into their "select global growth shares" fund.

I have just received my CTC from them, It shows the following:

Unit Trust Dividends Gross: £3.39
Equalisation: £3.00
Net dividend Interest: £3.39

Does this mean i need to complete a self assessment with HMRC to declare this and pay tax on it? I'm a bit confused. Or is this a certificate showing that the Tax has already been paid by HL on it?

In hindsight i should of opened at stocks and shares ISA 12 months ago and wouldn't need to worry about this.

Sorry if i sound vague, i just want to make sure i'm not going to get in trouble with the Tax man.

Thank you.

EthicsGradient

For that amount, there will be no tax owed - if it is dividend income, the first £2,000 are taxed at 0%, and if it is interest (which the wording implies) £1,000 is at 0% (along with all other interest you got - if that all adds up to more than £1,000, there would be under £1 extra tax from this). It's not saying HL has paid any tax on your behalf (even for people who do owe tax, they wouldn't do that these days). You should keep a copy of the CTC anyway, in case you ever need to show how much it was (that £3 equalisation would in theory be used in a capital gains calculation if you ever had to do one, but I think that would most likely be under the limit anyway).

In general, people don't have to register for self-assessment unless they're self-employed or have significant income apart form their job/pension. There is an HMRC tool to see if you should: https://www.gov.uk/check-if-you-need-tax-return