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Where Taxpayers and Advisers Meet

TAX ON AN ISHARES FTSE 100 UCITS ETF FUND

harlequin
Posts: 14
Joined: Wed Dec 02, 2015 9:50 am

TAX ON AN ISHARES FTSE 100 UCITS ETF FUND

Postby harlequin » Thu May 03, 2018 4:21 pm

Hopefully I can get some help on completing my self assessment tax return.
I wish to know how and where to enter the dividends received from an ishares FTSE 100 UCITS ETF Fund GBP showing on my consolidated tax voucher as foreign dividends as the ETF is domiciled in Ireland.
I understand the dividend amount has to be entered on my self assessment as a foreign dividend which is over £300 for the 2017/18 tax year and I am assuming further information has to be given but am not sure where and how to do this. I complete my tax return online.
The total dividend for the 2017/18 tax year is under £1500. Am I right in thinking having an ETF can be disadvantageous rather than buying individual FTSE 100 shares tax wise?

Any help and information out there would be very much appreciated. Have only had the ETF under 12 months.

Many thanks in advance

AGoodman
Posts: 465
Joined: Fri May 16, 2014 3:47 pm

Re: TAX ON AN ISHARES FTSE 100 UCITS ETF FUND

Postby AGoodman » Fri May 11, 2018 3:52 pm

I'm afraid I'm can't help with the form but why do you think an ETF is taxed differently to a single stock? Provided the fund has reporting status and distributes its income (and is not heavily invested in bonds), it should receive the same treatment.

maths
Posts: 7426
Joined: Wed Aug 06, 2008 3:25 pm

Re: TAX ON AN ISHARES FTSE 100 UCITS ETF FUND

Postby maths » Fri May 11, 2018 4:23 pm

The Foreign Supplementary Pages should be used (SA106).

The UK tax treatment of any income from an offshore fund depends upon whether the income is a dividend (as would be the case where the fund is structured as a company) or if not a company the income is simply taxed as miscellaneous income.

The potential disadvantage of offshore funds is that any gains made are not subject to CGT but income tax where the fund is non-reporting.

harlequin
Posts: 14
Joined: Wed Dec 02, 2015 9:50 am

Re: TAX ON AN ISHARES FTSE 100 UCITS ETF FUND

Postby harlequin » Sat May 12, 2018 11:41 am

Thank you for your response and information.
The ETF in question is an HMRC compliant one and has UK reporting fund status so I know income tax in not payable on capital gains just normal capital gains tax on casual gains and also you don't pay a higher rate of UK income tax on the dividends just because they are foreign as they are domiciled in Ireland and Ireland will not have withheld any Irish tax on my distribution.
I understand you also have to enter on the SA106 apart from dividend details from a tax voucher the number of units held multiplied by a certain figure for excess undistributed income. Having gone on the ishares website they published a report saying how much income (if any) they received on investors behalf but didn't actually distribute. For the Core FTSE 100 UCITS ETF the figure was £0.0001 per unit.
Do you have to enter these details in the SA106?
It does seem very complex.


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