How do I find out my Dividends

Linton

[Deleted User] said:

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 .

The equalisation is not included in your dividend for income tax purposes. Instead it is deducted from your purchase price when calculating CGT as it is not return of capital but rather return of some of your initial payment.

See https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg57705

So as said before keep all your records.  

[Deleted User]

Thank you Linton. To make sure I understand what you're saying correctly, say I receive £2000 in div payment but £500 is the EQP. For tax purposes, I declare 1500 as the net div and when I sell units I would also deduct 500 from the purchase price -  no matter which year the sale of units happens.  

wmb194

[Deleted User] said:

Thank you Linton. To make sure I understand what you're saying correctly, say I receive £2000 in div payment but £500 is the EQP. For tax purposes, I declare 1500 as the net div and when I sell units I would also deduct 500 from the purchase price -  no matter which year the sale of units happens.  

It would be a £2,000 *distribution* comprised of a £1,500 dividend and a £500 equalisation payment. It might depend on your provider but usually they're separate credits to your account so you shouldn't get confused.

Doctor_Who

[Deleted User] said:

Thank you Linton. To make sure I understand what you're saying correctly, say I receive £2000 in div payment but £500 is the EQP. For tax purposes, I declare 1500 as the net div and when I sell units I would also deduct 500 from the purchase price -  no matter which year the sale of units happens.  

Your tax certificate should show these as separate sums (in separate columns), so no need to subtract one from the other, at least that's what my CTC from II shows. You declare the 'dividends' as dividend income.

[Deleted User]

Doctor_Who said:

[Deleted User] said:

Thank you Linton. To make sure I understand what you're saying correctly, say I receive £2000 in div payment but £500 is the EQP. For tax purposes, I declare 1500 as the net div and when I sell units I would also deduct 500 from the purchase price -  no matter which year the sale of units happens.  

Your tax certificate should show these as separate sums (in separate columns), so no need to subtract one from the other, at least that's what my CTC from II shows. You declare the 'dividends' as dividend income.

The reason I said 'subtract the EQP' is that I actually receive the £2000 in my bank account ie inclusive of the EQP.  But you're absolutely correct - my CTC shows both amounts separately. It also shows the amounts of group 1 and group 2 units.  

I was more concerned with the tax treatment for the Equalisation payment. 

Doctor_Who

[Deleted User] said:

Doctor_Who said:

[Deleted User] said:

Thank you Linton. To make sure I understand what you're saying correctly, say I receive £2000 in div payment but £500 is the EQP. For tax purposes, I declare 1500 as the net div and when I sell units I would also deduct 500 from the purchase price -  no matter which year the sale of units happens.  

Your tax certificate should show these as separate sums (in separate columns), so no need to subtract one from the other, at least that's what my CTC from II shows. You declare the 'dividends' as dividend income.

The reason I said 'subtract the EQP' is that I actually receive the £2000 in my bank account ie inclusive of the EQP.  But you're absolutely correct - my CTC shows both amounts separately. It also shows the amounts of group 1 and group 2 units.  

I was more concerned with the tax treatment for the Equalisation payment. 

Taken from my CTC that I happen to have open!

Equalisation: Equalisation may apply at the end of the first
 distribution period following your purchase of new units. The
 equalisation payment is not income. It is a return of the initial
 price paid and it should therefore be deducted from the price paid when computing any chargeable gain. 

EthicsGradient

Going back to the original thread title - sometimes, you just have to write to the managers to find out what's going on. I hold the Amundi Lyxor Core UK Equity All Cap ETF; it has, up until now, paid a dividend in early July and early December. But the early July one has not appeared; I emailed them, and they told me they'd decided to switch to a once-a-year distribution, so the next one won't be until December.

They hadn't announced it in any news service that I can see (eg the LSE site has daily net asset value announcements, and the declaration in late Nov 22 for the December 22 dividend, but nothing else since then), and the KIID on their own website still says "biannually" (the full prospectus just says they may pay a dividend one or more times a year). JustETF still lists the distribution as twice yearly.

Annoying that they change it without a proper effort to tell people; at least the (presumably double) payment will still be in the same tax (and calendar) year.

VXman

Doctor_Who said:

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.

This is a timely post. I am just in the process of filling in my first self assessment for the first time. I was about to locate my dividends in Vanguard so that is useful. They are in a  GIA

I'm just confused about them being taxed. Previously when I have been on PAYE i have never declared the dividends. As far as I see it they are just within the investment fund (accumulation) and I won't have use of them until I withdraw and then I will have to pay CGT if I have made any gains.

How come you declare dividends and get taxed on them in self assessment but not in PAYE? (particularly when you have not seen/used, not made a profit on the funds - currently over all my vanguard is down so I have lost money not gained anything!) 

Doctor_Who

VXman said:

Doctor_Who said:

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.

This is a timely post. I am just in the process of filling in my first self assessment for the first time. I was about to locate my dividends in Vanguard so that is useful. They are in a  GIA

I'm just confused about them being taxed. Previously when I have been on PAYE i have never declared the dividends. As far as I see it they are just within the investment fund (accumulation) and I won't have use of them until I withdraw and then I will have to pay CGT if I have made any gains.

How come you declare dividends and get taxed on them in self assessment but not in PAYE? (particularly when you have not seen/used, not made a profit on the funds - currently over all my vanguard is down so I have lost money not gained anything!) 

I was in SA for years and declared dividends that way, but HMRC removed me from SA in 2018. I now declare the dividends through my personal tax account on Gov.uk.

wmb194

VXman said:

Doctor_Who said:

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.

This is a timely post. I am just in the process of filling in my first self assessment for the first time. I was about to locate my dividends in Vanguard so that is useful. They are in a  GIA

I'm just confused about them being taxed. Previously when I have been on PAYE i have never declared the dividends. As far as I see it they are just within the investment fund (accumulation) and I won't have use of them until I withdraw and then I will have to pay CGT if I have made any gains.

How come you declare dividends and get taxed on them in self assessment but not in PAYE? (particularly when you have not seen/used, not made a profit on the funds - currently over all my vanguard is down so I have lost money not gained anything!) 

You have "seen/used" them, they were reinvested in your fund. If you haven't declared them in the past when you should have then that was just an error.