We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Money Market Funds and Shares/ETFs/IT

explorerm
explorerm Posts: 63 Forumite
Seventh Anniversary 10 Posts Name Dropper
edited 11 November 2023 at 12:02PM in Savings & investments
Hello,

I’m thinking to take advantage of the £1000 dividend allowance, I have already maxed out my £20,000 ISA allowance.

If MMFs (Royal London: CSH2) are held in a general investment account am I correct in saying that income is treated as interest?  I’m already exceeding my PSA, and am a basic rate tax payer. 
Would I need to report the internet received, or would the platform or fund report it to HMRC?

Secondly if I were to buy an Investment Trust (maybe City of London) or shares (maybe Legal and General) and hold it in a general investment account, I assume the dividends produced from both would count towards my £1000 dividend allowance? (Rather than towards my PSA)

if dividends received exceed the allowance, then how is it taxed ? Do you have to report it?

Thank you for any advice in advance.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.