CMOP and dividends

mills112

I have been keeping an eye on this fund for a while and note that it is an accumulation fund.

https://www.google.com/finance/beta/quote/CMOP%3ALON?sa=X&ved=2ahUKEwi0h8XwsYGVAxUWUkEAHerQFe0Q3ecFKAN6BAgdEAQ

When I had other funds where you could choose to have the fund as an accumulation fund or a distributing one, where you choose the accumulation fund, you still had to pay tax on the dividends that were paid into the fund.

I assume this is the same as this CMOP fund? Thought I should double check. Thanks

masonic

This ETF does not pay dividends, but it does have ERI. I am unsure whether that ERI is considered dividend income or interest income - it is not being generated from equities, since the ETF is composed of derivatives and cash.

mills112

https://forums.moneysavingexpert.com/discussion/comment/82032460#Comment_82032460

cheers. I googled ERI for ETF and this is what it says. so yeah, the ERI is taxable by the look of it unless I buy it in my SIPP and ISA accounts. And yeah, I would expect ERI to be treated as dividends as it tracks an index rather than being an investment fund, but you are right, it could be treated as interest.

AI Overview ERI (Excess Reportable Income) for ETFs is undistributed, reinvested income that offshore, accumulating funds automatically roll back into their net asset value. Even though you do not receive this cash, HMRC considers it taxable income. It primarily applies to non-UK domiciled (e.g., Irish or Luxembourg) funds held in a General Investment Account