Fidelity ETF ishares FTSE 100

confusedetf wrote: »

Thank you for all the information you gave with regard to my questions on ETF's.
I understand the paper SA106 Foreign Supplementary Page form differs from the online SA106 version. Does that mean there are different layouts for entering dividends received plus excess undistributed income?

Without logging on to go and do a fake online tax return I don't know if the layout is different from the pdf/paper version that I could download. Doesn't really matter. The excess undistributed income which is treated as a deemed dividend in a particular tax year is added to the actual cash dividend you are reporting for that tax year to figure your tax liability. The total of the actual and deemed dividend is the dividends you declare from that stock which can just go into one box.

If there was a gain when selling any of the units on the ETF, this too would have to be entered on the SA106?

Your capital gains from selling assets go on the capital gains pages of the tax return.

The only reason you would mention gains on the Foreign pages would be if you had paid foreign capital gains taxes on some of the gains you are putting on the capital gains pages, and wanted to claim foreign tax credit relief. When you used your UK fund platform to sell an ETF for more than you paid for it (which happened to be an Irish ETF), you won't have paid any capital gains tax to Ireland, so there is nothing to put on the Foreign pages in respect of gains.

I understand the ETF I have has UK reporting fund status so normal capital gains tax on any casual gains applies

Yes, you pay normal capital gains tax on any capital gains you make on an offshore fund that has UK reporting fund status.

FYI, 'casual gains' was my smartphone autocorrect typo for capital gains, not sure if you made the same one or just thought I was using a bit of special terminology

I don't have to pay a higher rate of UK income tax on the dividends because they are foreign. The ETF Fund as mentioned earlier is domiciled in Ireland.

Correct, it is just a dividend, there is no special higher rate on the total amount received (and deemed received) just because of them being foreign. But if over £300 you have to use the foreign pages.

confusedetf wrote: »

Am I correct in thinking 1800 units multiplied by £0.0001 = £0.18? What is the calculation after that to be added to the cash dividend?

Total dividend to report, is actual cash dividend plus deemed undistributed dividend.

How do you add 18 pence to something? Take the something, and add 18p.

confusedetf wrote: »

If you had a dividend of say hypothetically £500 or say £1000 to round figures up easily, how much would be added to the dividend when working out the excess undistributed income when multiplying the number of units/shares by £0.0001? I am having a mental blank!!

You certainly seem to be trying to over complicate it.

You had a certain amount of units. The fund didn't distribute all the income in made, and kept some inside the fund. The amount they retained in the fund for their accounting year to February 2017, which you still have to pay tax on as if it were actually paid to you on 31/8/17, is £0.0001 for every unit you held.

If the number of units you have is 1800, the total amount of deemed dividend for the year is £0.18.

So if the dividend cash you received for the tax year 6 April 2017 to 5 April 2018 was £500.00, the amount of dividend you should actually put through your tax return would be £500.18

Which if you were doing online would probably be rounded down to £500 by the software.

confusedetf wrote: »

Thank you Bowlhead99.
Just to clarify....the dividend information received on a tax voucher should be entered on the SA106 in a certain box.
Do you still have to work out the excess undistributed income i.e. the number of shares held multiplied by £0.0001 and enter that figure as well or not?.

The tax voucher you got from your investment platform or stockbroker at the time of your actual cash distributions will not include the information about what income the fund made for itself during the year and didn't choose to distribute. And that excess income which was not distributed is still income that was allocated to your shares and needs to be taxed under income tax rules.

So you'll need to add that excess undistributed income to the actual distributions of income and report one bigger number on your tax return.

As it's an offshore fund under the reporting fund regime, the fund publishes that information in its own reports. You can go to the iShares website, look up your fund, and find the 2017 Reportable Income report within the literature section at (https://www.ishares.com/uk/individual/en/literature/tax-information/ishares-plc-reportable-income-2017-en-gb-rc-tax-information.xls) to see how much the excess undistributed income was per unit or share of the fund that you held. Then you multiply out your number of shares by the amount per unit to get the undistributed income allocated to your shareholding in total: in your case a total of 18 pence.

Then you add the 18 pence of undistributed income to the however many pounds or hundreds of pounds or thousands of pounds that was distributed to you, and you'll have the total amount that needs to go in your tax return.

Any units sold for more than they were originally paid for would be liable for capital gains which should be entered in the capital gains form of the self assessment and not in the foreign page form SA106?

Yes, put them through the normal capital gains calculation along with your gains and losses from other investments. You will end up with some UK tax to pay if the net gains exceed your annual exemption and you don't have any losses from previous years.

But you've not suffered any foreign capital gains taxes for which you're trying to claim a credit against your UK tax, so you don't have any reason to fill out the foreign tax credit relief section.