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Where Taxpayers and Advisers Meet

ETFs & Shares treated as Interest rather than CG

paultilling
Posts:17
Joined:Tue Feb 19, 2013 11:51 am
ETFs & Shares treated as Interest rather than CG

Postby paultilling » Thu Mar 16, 2017 1:07 pm

I have heard that certain foreign shares and ETFs gains are treated as interest rather than capital gains by HMRC.
Capital losses cannot be set against capital gains etc.. Has anyone any knowledge of this and is there a list of these available?
Any advice most welcome. Thank you.
PT

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: ETFs & Shares treated as Interest rather than CG

Postby maths » Thu Mar 16, 2017 6:42 pm

Does ms7dcml's post above yours not deal with your query?

paultilling
Posts:17
Joined:Tue Feb 19, 2013 11:51 am

Re: ETFs & Shares treated as Interest rather than CG

Postby paultilling » Fri Mar 17, 2017 11:24 am

I'm sorry maths, I don't understand your reply. Can you elaborate please?
PT

rr296
Posts:15
Joined:Thu Sep 24, 2009 10:19 pm

Re: ETFs & Shares treated as Interest rather than CG

Postby rr296 » Mon Oct 09, 2017 10:43 pm

Bit late for perhaps still useful

I think you are referring to:
  • Non-reporting funds - which is any fund (incl. ETF) that is not a reporting fund. HMRC publish and regularly update a list of all funds that have reporting status. Gains on these are taxed as income (not interest per se but boils down to the same thing) rather than at CGT rates and no capital loss is available
  • Bond funds - which is any reporting fund (incl. ETF) that has "more that 60% by value of its investments in debt type assets at any time during an investing company’s accounting period. Dividends from these are taxed as interest. Gains / losses are dealt with as normal"
Hope still helpful for someone...


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