HICL Infrastructure plc unit trust - taxation

MarcoM

Hi,

I received interest payments and dividend payments from this unit trust.

I am a bit confused as to the taxation. Should the interest entries be included within my self assessment income entries rather than the dividens entries even though they are from the same Unit Trust?

thank you in advance for your response.

wmb194

MarcoM said:

Hi,

I received interest payments and dividend payments from this unit trust.

I am a bit confused as to the taxation. Should the interest entries be included within my self assessment income entries rather than the dividens entries even though they are from the same Unit Trust?

thank you in advance for your response.

It isn't a unit trust, it's an investment trust, so essentially a normal company following some special rules in order to obtain some tax benefits.

Yes, interest payments should be included in the 'any other UK interest section' (I think this is what it's called) rather than the UK dividends section.

masonic

HICL Infrastructure plc is an investment trust. I'll assume that's what you mean, although if you hold a similarly named unit trust, this may not be relevant to you.

HICL has "The ability to notionally designate a proportion of the dividends distributed to shareholders as interest distributions", which allows it to offset any taxable profits it generates as an IT. This means that part of your distributions will be classified as interest for tax purposes and part dividends. You would need to split out into the separate sections of your tax return. Even better, hold in a S&S ISA or SIPP

ColdIron

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

MarcoM

You are correct,  upon downloading the HL tax certificate some are split as dividend and some as interest payment.  So for my SA I will put the dividends in the dividend section of the SA and the interest in the any other interest section. 

Albermarle

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Prism

Albermarle said:

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Its only a single payment but if held outside a SIPP or ISA its important to declare it correctly on the self assessment.

ColdIron

Albermarle said:

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Yes

It's not in my tax certificate obviously (it's in my SIPP like you) but if I look at the transaction history it shows the interest and dividend as distinct payments

wmb194

Prism said:

Albermarle said:

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Its only a single payment but if held outside a SIPP or ISA its important to declare it correctly on the self assessment.

Same as ColdIron, in my experience it's paid as separate dividend and interest payments to one of my GIAs.

It's ex-dividend again this week and the declaration states that of the total distribution of 2.06p it's going to be 22% interest.

https://www.londonstockexchange.com/news-article/HICL/first-quarterly-interim-dividend/15549197

Prism

wmb194 said:

Prism said:

Albermarle said:

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Its only a single payment but if held outside a SIPP or ISA its important to declare it correctly on the self assessment.

Same as ColdIron, in my experience it's paid as separate dividend and interest payments to one of my GIAs.

It's ex-dividend again this week and the declaration states that of the total distribution of 2.06p it's going to be 22% interest.

https://www.londonstockexchange.com/news-article/HICL/first-quarterly-interim-dividend/15549197

Interesting. I hold it in my ISA in Youinvest and it comes as a single payment.

Albermarle

Prism said:

wmb194 said:

Prism said:

Albermarle said:

ColdIron said:

HICL split their distributions between Interest Payments and Dividend Payments. I don't have to report it on my self assessment as it's in my SIPP and an ISA but if I held it unwrapped I would declare it in separate sections. I would imagine that your annual Consolidated Tax Certificate should show it correctly split out so it's a simple matter of transposing the figures as you would for all other distributions

I have HICL in my SIPP. I only remember ever seeing one type of payment, which the platform automatically reinvests for me.
Although as I was not aware there were two types of payment, I have never looked that closely. So with your investment do you actually see two separate payments ?

Its only a single payment but if held outside a SIPP or ISA its important to declare it correctly on the self assessment.

Same as ColdIron, in my experience it's paid as separate dividend and interest payments to one of my GIAs.

It's ex-dividend again this week and the declaration states that of the total distribution of 2.06p it's going to be 22% interest.

https://www.londonstockexchange.com/news-article/HICL/first-quarterly-interim-dividend/15549197

Interesting. I hold it in my ISA in Youinvest and it comes as a single payment.

Now checked mine with Fidelity. On 30/06/22, there were two separate payments, both marked as dividend payments ( maybe the Fidelity system just calls all payments dividend payments?)
Both payments were of a similar amount. ON 30/03/22 there was also two payments, split about 2:1 in value.