Vanguard GIA information for my Self assessment

Dazed_and_C0nfused

I'll let others better qualified comment on the investment side of things but don't forget there is no dividend "allowance".

The £990 in your example would be taxable income and form part of your adjusted net income.

So although being taxed at 0% it could add to any HICBC, reduce your Personal Allowance (ANI > £100k) or even make ineligible for Marriage Allowance.

Fatinvestor

dllive said:

Hi
This year I created a GIA with Vanguard. I opted for income-only funds.
What data do I need to keep/input on my Self Assessment? Date of investment, amount invested and income made?
Does Vanguard produce a tax statement?
Thanks

OP. I presume you deal with Vanguard directly as opposed via a potentially unscrupulous IFA? If you go direct ot Vanguard how do you find them? They seem to one of a number of providers of choice on this forum, and based on feedback obtained to date I (and many of my friends) appear to be somewhat categorised as being wollies for dealing with Discretionary Fund Managers lol 

GeoffTF

It is more complicated than people are saying here. ETFs have Excess Reportable Income, and so do Ireland domiciled OEICs. A majority of Vanguard OEICs are Ireland domiciled. OEICs and unit trusts have Equalisation. You are subject to CGT only when you sell an asset. You either have a lot of studying to do, or need to hire an accountant. Which funds do you hold?

GeoffTF

AndyTh_2 said:

Dazed_and_C0nfused said:

If you're referring to dividends then you just enter the total of all (taxable) dividends.  Not any dates of how much you invested.

That would be only correct for the dividend income portion of a distribution. Shares which got a dividend in their first tax year may have given an equalisation payment, which would be a capital gain instead of dividend income.

Hopefully the transactions show that though.

The equalisation payment is not a capital gain. It is a return of capital.

AndyTh_2

GeoffTF said:

AndyTh_2 said:

Dazed_and_C0nfused said:

If you're referring to dividends then you just enter the total of all (taxable) dividends.  Not any dates of how much you invested.

That would be only correct for the dividend income portion of a distribution. Shares which got a dividend in their first tax year may have given an equalisation payment, which would be a capital gain instead of dividend income.

Hopefully the transactions show that though.

The equalisation payment is not a capital gain. It is a return of capital.

ok sorry to be correct it's also a reduction in cost basis that will lead to a future capital gain of the same amount on sale

dllive

GeoffTF said:

It is more complicated than people are saying here. ETFs have Excess Reportable Income, and so do Ireland domiciled OEICs. A majority of Vanguard OEICs are Ireland domiciled. OEICs and unit trusts have Equalisation. You are subject to CGT only when you sell an asset. You either have a lot of studying to do, or need to hire an accountant. Which funds do you hold?

The funds I hold (all are income):
FTSE Developed World ex-U.K. Equity Index Fund
LifeStrategy® 100% Equity Fund
U.S. Equity Index Fund 
FTSE Emerging Markets UCITS ETF 
FTSE All-World High Dividend Yield UCITS ETF
FTSE All-World UCITS ETF (VWRL)
S&P 500 UCITS ETF (VUSA)

 (yes theres lots of overlap etc, I know I need to simplify! )

GeoffTF

dllive said:

GeoffTF said:

It is more complicated than people are saying here. ETFs have Excess Reportable Income, and so do Ireland domiciled OEICs. A majority of Vanguard OEICs are Ireland domiciled. OEICs and unit trusts have Equalisation. You are subject to CGT only when you sell an asset. You either have a lot of studying to do, or need to hire an accountant. Which funds do you hold?

The funds I hold (all are income):
FTSE Developed World ex-U.K. Equity Index Fund
LifeStrategy® 100% Equity Fund
U.S. Equity Index Fund 
FTSE Emerging Markets UCITS ETF 
FTSE All-World High Dividend Yield UCITS ETF
FTSE All-World UCITS ETF (VWRL)
S&P 500 UCITS ETF (VUSA)

 (yes theres lots of overlap etc, I know I need to simplify! )

The first three are UK domiciled OEICs. Here is a helpful article:

https://techzone.abrdn.com/anon/public/investment/Guide-Taxation-of-Collectives

(You cannot rely on articles like this. You will need to check everything, e.g. on the HMRC website.)

The remaining funds are Ireland domiciled ETFs, which will usually have Excess Reportable Income. Here is a helpful Monevator article:

https://monevator.com/excess-reportable-income/

(Again, you cannot rely on articles like this.)

Here is the Vanguard guide on General Account tax information:

https://www.vanguardinvestor.co.uk/investing-explained/general-account-tax-information

Vanguard is a good deal better than the competition here, but they do not provide accountancy services or tax advice.

Swipe

On the Vanguard Investor UK platform, all funds that need to report Excess Reportable Income will be detailed in your 'Report to Participants’ report and can be found in your Vanguard account under Documents / reports.

dllive

Hmm, ok, thanks @GeoffTF . 

This sentence from Monevator's post resonates: "The danger with DIY investing is that you might miss something that gets you into trouble. Something you never knew you didn’t know."

To keep my tax affairs simpler, Im happy to migrate from the Ireland domiciled ETFs to their UK equivalents. 

ColdIron

There are few (if any) UK domiciled ETFs. The closest UK equivalents would probably be funds/OEICs