How do I find out my Dividends

Redlander

I asked a similar question earlier about my pension fund but I'm still a bit puzzled about dividends.

I have investments of Vanguard Lifestrategy 60 (Accumulation) managed on Interactive Investor. I understand that dividends are paid on May 31st and invested back into the fund. But do the dividends not leave any trace at all? I've not noticed any change in the value of my investments. Is there any way I can find out what dividend was paid by Vanguard Lifestrategy 60 this year?

ColdIron

The dividends from the underlying companies are paid into the fund in dribs and drabs throughout the year. The ex dividend date is 01/04/2024 and the payment date is 31/05/2024. If you had the income fund you would receive a cash payment but with the Accumulation fund they are simply retained and used to buy more of the underlying companies and increase the unit price

Doctor_Who

Redlander said:

I asked a similar question earlier about my pension fund but I'm still a bit puzzled about dividends.

I have investments of Vanguard Lifestrategy 60 (Accumulation) managed on Interactive Investor. I understand that dividends are paid on May 31st and invested back into the fund. But do the dividends not leave any trace at all? I've not noticed any change in the value of my investments. Is there any way I can find out what dividend was paid by Vanguard Lifestrategy 60 this year?

Is this in a SIPP or GIA? In the GIA your consolidated tax certificate will show any dividends regardless of whether the fund is INC or ACC (both are taxable). If the fund is in a SIPP I don't think there is anyway to know since you don't get a consolidated tax certificate for SIPPs and only INC funds would show the dividends paid in the transaction history.

ColdIron

Fidelity may give you some insight

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B3TYHH97-vanguard-lifestrategy-60-equity-acc/dividends

Redlander

Doctor_Who said:

Redlander said:

I asked a similar question earlier about my pension fund but I'm still a bit puzzled about dividends.

I have investments of Vanguard Lifestrategy 60 (Accumulation) managed on Interactive Investor. I understand that dividends are paid on May 31st and invested back into the fund. But do the dividends not leave any trace at all? I've not noticed any change in the value of my investments. Is there any way I can find out what dividend was paid by Vanguard Lifestrategy 60 this year?

Is this in a SIPP or GIA? In the GIA your consolidated tax certificate will show any dividends regardless of whether the fund is INC or ACC (both are taxable). If the fund is in a SIPP I don't think there is anyway to know since you don't get a consolidated tax certificate for SIPPs and only INC funds would show the dividends paid in the transaction history.

It's a GIA

Prism

Another way to look at is that the income version drops by the value of the dividend on that date but the accumulation doesn't

Doctor_Who

Redlander said:

Doctor_Who said:

Redlander said:

I asked a similar question earlier about my pension fund but I'm still a bit puzzled about dividends.

I have investments of Vanguard Lifestrategy 60 (Accumulation) managed on Interactive Investor. I understand that dividends are paid on May 31st and invested back into the fund. But do the dividends not leave any trace at all? I've not noticed any change in the value of my investments. Is there any way I can find out what dividend was paid by Vanguard Lifestrategy 60 this year?

Is this in a SIPP or GIA? In the GIA your consolidated tax certificate will show any dividends regardless of whether the fund is INC or ACC (both are taxable). If the fund is in a SIPP I don't think there is anyway to know since you don't get a consolidated tax certificate for SIPPs and only INC funds would show the dividends paid in the transaction history.

It's a GIA

Then the CTC will show the dividend, but you'll need to wait until ~May 2024 for this tax year's CTC to be produced. Otherwise it's a manual process of multiplying the number of units held on the ex-dividend date by the value of the dividend.

Redlander

OK, so I've just received a CTC for 2022-3 and it shows just over £4000 in dividends.  All my funds are accumulation funds. Do I have to declare these dividends on my Self-Assessment? Or, since the effect of the dividends is to increase the value of my holdings, am I only liable for Capital Gains Tax should I eventually sell these holdings?

Doctor_Who

Redlander said:

OK, so I've just received a CTC for 2022-3 and it shows just over £4000 in dividends.  All my funds are accumulation funds. Do I have to declare these dividends on my Self-Assessment? Or, since the effect of the dividends is to increase the value of my holdings, am I only liable for Capital Gains Tax should I eventually sell these holdings?

They are liable to taxation just like INC funds.

Taken from here:

https://www.ajbell.co.uk/learn/compare-acc-inc-funds#:~:text=Income you receive from income,the income from income units.

What are the tax implications of Inc or Acc units?

Income you receive from income units is taxed as either dividend or interest income, depending on what sort of assets are held within the fund.

Income reinvested in accumulation units is known as a 'notional distribution', and is taxable in exactly the same way as the income from income units.

Linton

Redlander said:

OK, so I've just received a CTC for 2022-3 and it shows just over £4000 in dividends.  All my funds are accumulation funds. Do I have to declare these dividends on my Self-Assessment? Or, since the effect of the dividends is to increase the value of my holdings, am I only liable for Capital Gains Tax should I eventually sell these holdings?

You declare the reinvested dividends which are taxed according to the dividend income rules.

When you sell, the gain for CGT purposes is the increase in value minus the dividends.  So with a GIA you need to keep detailed records.  That is a simplified explanation - things get more complicated with your first ever dividend from an investment.

lindabea

I'm just wondering if I can widen the scope of this thread and ask a question about how to treat the equalisation payment (if applicable).  Do you deduct the EQP from the actual div payment (as this is a return of capital) and declare the balance as actual div paid for tax.  Or do you deduct the full amount from the gain made when units are sold.   

If I understand my reading correctly, I think the EQP is deducted from the gross div and declare only the difference as a div payment for div tax. But don't know what you do when it comes to CGT. Presumably, you can't deduct it again.  So, do you deduct EQP for div tax or CGT and if for CGT, do you carry the EQP against any gains in future years .