Help with Unit Trust

IreneMot

Hello All.  

My uncle as passed away, and I am sorting out his accounts, unit trust and shares. I am trying to get my head around the Unit trusts, but it's not clicking. HMRC are asking me to let them know of any interest from banks (no ISA) and share dividends. I attach some photos to make this easier to understand. 

He has three unit trusts. 

1. Janus Henderson UK Alpha Fund E (ISA)
2. Janus Henderson Asia Pacific Capital Growth Fund E Acc
   
3. Aberdeen - emerging markets fund acc a
   

On the paperwork, they said that he gets income on these, and they are accumulation (see images).

My questions: 

1. I am guessing I would need to give these figure to HMRC unless they are ISAs?
2. These "payment" have been coming up every year from looking at the paperwork, but his units shares are not going up. My understanding is that they are accumulation so they should be getting reinvested? 

I am guessing I am not quite getting something here or missing a bit of information. 
Any help would be a big help

 

Doctor_Who

IreneMot said:

My questions: 

1. I am guessing I would need to give these figure to HMRC unless they are ISAs?
2. These "payment" have been coming up every year from looking at the paperwork, but his units shares are not going up. My understanding is that they are accumulation so they should be getting reinvested? 

1. Unless the funds are in an ISA or pension then the dividends are subject to tax for both INC and ACC funds.
2. For ACC funds the income is reinvested and results in the unit price going up, not the number of units held increasing.

masonic

Sorry for your loss. The funds are reinvesting income within the fund, so the value of each unit increases rather than the number of units increasing. This is still treated as taxable income when held outside of an ISA/pension. The income from these funds would be treated as dividends, so could be included within the annual dividend nil rate band.

ColdIron

IreneMot said:

HMRC are asking me to let them know of any interest from banks (no ISA) and share dividends. I attach some photos to make this easier to understand.

He has three unit trusts. 

1. Janus Henderson UK Alpha Fund E (ISA)
2. Janus Henderson Asia Pacific Capital Growth Fund E Acc
   
3. Aberdeen - emerging markets fund acc a

It appears the Janus Henderson UK Alpha Fund E (ISA) fund is held within an ISA so you can forget about reporting it to HMRC as they won't want to know

Be aware that the other two pay dividends and not interest so you would report those dividends separately from interest (if any)

On the paperwork, they said that he gets income on these, and they are accumulation (see images).
My questions: 

1. I am guessing I would need to give these figure to HMRC unless they are ISAs?
2. These "payment" have been coming up every year from looking at the paperwork, but his units shares are not going up. My understanding is that they are accumulation so they should be getting reinvested?
   

1. For funds 2 and 3 above yes, if they are asking for them, but not 1 as above
2. Funds treat distributions in one of two ways depending upon if they are 'Income' or 'Accumulation'
   The Income class pays out the dividends as cash into a cash account or directly to a nominated bank account
   The Accumulation class does indeed reinvest the dividends but it does so by retaining them within the fund thereby increasing the unit price rather than creating new units

But it doesn't matter from a tax perspective, he was the beneficiary either way so they are reportable

I am guessing that funds 2 and 3 are held in some non-tax privileged general investment or share dealing account (not an ISA or SIPP). If so the platform should provide an annual Consolidated Tax Certificate, usually May-July, for the previous financial year. Try and dig this out as HMRC will accept the figures on it

IreneMot

@ColdIron @masonic @Doctor_Who

Thank you for the all the reply and I understand now. It is all sorted and ready to send off. Thank you again for the help