Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Tax advice: declaring fund interest and dividends
+ Reply to discussion
Options
Stephen B.
Posted: 13 April 2024 14:00:05(UTC)
#11

Joined: 26/09/2012(UTC)
Posts: 795

Thanks: 27 times
Was thanked: 1034 time(s) in 477 post(s)
You don't make it entirely clear why you're making a tax return at all. If your income is definitely within the allowances or is taxed via PAYE then you typically won't need to do it. OTOH if you are doing a tax return then you do need to declare all your income, but as others have said you should have all the information easily to hand from your various providers. I don't think the idea of overdeclaring income is at all a good one, if they ever do check then errors in any direction are likely to raise red flags. OTOH for relatively small amounts the chance of any kind of serious audit is basically zero. At most they might ask you to provide a document to confirm something, but that's more likely for a capital gain/loss than income. Personally I've submitted tax returns every year since 1992 and I've yet to have anything queried.
Back to top Quote
2 users thanked Stephen B. for this post.
Tim D on 13/04/2024(UTC), MBA MBA on 16/04/2024(UTC)
Lex Further
Posted: 16 April 2024 07:23:42(UTC)
#12

Joined: 18/09/2021(UTC)
Posts: 181

Thanks: 1 times
Was thanked: 48 time(s) in 34 post(s)
f your total disposal is less than £50,000 and your capital gains are below the annual exemption limit (£12,300 for the 2023/24 tax year), you generally won't have to report them on your self-assessment tax return. However, if your gains exceed the allowance, you'll need to report and pay tax on the excess. Anyway, indinero customer service knows everything about it, you might want to contact them instead.
Back to top Quote
 |  Edit by user
1 user thanked Lex Further for this post.
MBA MBA on 16/04/2024(UTC)
Ian Eccles
Posted: 16 April 2024 07:57:35(UTC)
#13

Joined: 04/07/2021(UTC)
Posts: 1,079

Thanks: 313 times
Was thanked: 1818 time(s) in 752 post(s)
Lex Further;302571 wrote:
f your total disposal is less than £50,000 and your capital gains are below the annual exemption limit (£12,300 for the 2023/24 tax year), you generally won't have to report them on your self-assessment tax return. However, if your gains exceed the allowance, you'll need to report and pay tax on the excess.


Lex, the annual CGT limit for the 23/24 tax year is £6000.00
Back to top Quote
2 users thanked Ian Eccles for this post.
MBA MBA on 16/04/2024(UTC), Guest on 11/05/2024(UTC)
Newbie
Posted: 18 April 2024 15:31:37(UTC)
#14

Joined: 31/01/2012(UTC)
Posts: 3,819
Slight tangent but hoping someone can help.
MMF along with bond funds I believe are subject to Income Tax.
However where I am struggling is CSH2 - given it is swaps does it fall into the CGT regime or is it classed as income - if the latter which Divi or IT and is it offshore income ?
I currently hold it in tax efficient wrappers (so not need to report anything) but have some options maturing this month and given state of play want to hold in cash-like holdings to deploy over time and thinking of more CSH2 - in this instance it is the tax which if of most concern.
Thank you in advance.
Back to top Quote
Isaac J
Posted: 18 April 2024 15:58:36(UTC)
#15

Joined: 25/05/2022(UTC)
Posts: 299

Thanks: 254 times
Was thanked: 610 time(s) in 227 post(s)
Hi Newbie, I googled it and the very first result was funnily enough from another thread on this site in response to one of your messages (it was some time ago), which may help: https://moneyforums.citywire.com/yaf_postst16938_Liquidty-or-CSH2-and-PersonalAllowance-Planning.aspx
Back to top Quote
 |  Edit by user
1 user thanked Isaac J for this post.
Newbie on 18/04/2024(UTC)
Tim D
Posted: 18 April 2024 16:03:17(UTC)
#16

Joined: 07/06/2017(UTC)
Posts: 8,883

Thanks: 33209 times
Was thanked: 24362 time(s) in 7229 post(s)
@Newbie. Don't hold myself, but

- I believe you will not see any interest declared from it on your platform's tax certificates. Which might make you think all the accumulating value is capital gain...but if you check the ERI you might find that's how the return actually manifests. And ERI is taxed as income. There's some interesting posts at https://community.tradin...reportable-income/64787 (and maybe https://www.reddit.com/r...ncome_or_capital_gains/ ) noting that it didn't pay any ERI in recent years; unclear whether it's just 'cos rates were low or because it takes time for this stuff to come through (it might have started declaring it again in 2023).

- If it's income it's foreign income because it's offshore domiciled (Luxembourg).

- Whether it uses swaps or whatever is an internal detail within the ETF; makes no difference to HMRC.

More of this sort of thing in other recent thread https://moneyforums.city...lAllowance-Planning.aspx
Back to top Quote
 |  Edit by user
1 user thanked Tim D for this post.
Newbie on 18/04/2024(UTC)
2 PagesPrevious page12
+ Reply to discussion

Markets

Other markets