Capital Gains and Excess Reportable Income

Pat38493

TheTelltaleChart said:

The accounting period for VRWL is the year ending on 30 June, not the calendar year. Perhaps that was causing confusion?

I take it you don't have to fill in a tax return? It would perhaps be simpler if you did, because you'd just add up real dividends received + ERI dividends, and enter the total figure in the box for dividends. When not filling in a tax return, there is, as you suggest, no need to contact HMRC about ERI dividends, so long as they don't affect how much tax you should be paying.

CGT is entirely based on realized gains and losses, so anything that's gone up or down from your purchase price, but you haven't disposed of yet, is ignored.

Not currently.  I have had to fill in a tax return in the past but not for the last few years, so I am not totally terrified of it but I prefer to avoid needless admin.  I also understand that if you have savings or dividend income less than £10K, you can inform HMRC via the gov.uk portal so based on that, I would hopefully not need to fill out a tax return.

I think part of my confusion is that I was seeing ERI as a special type of income that has to be separately reported, whereas based on this discussion, it seems like ERI is basically either (accumulated) dividend income, or savings income, depending on the category of investment that it came from, so either way if it's less than 10K I should be able to avoid doing a full tax return.