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Wrong board not for hyp practical. Moving to tax board. Raptor
Wrong board not for hyp practical. Moving to tax board. Raptor
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petronius wrote:This has probably been discussed ad nauseam, but do I understand right that dividend taxation in UK is more favourable for those holding individual shares than those holding ETFs (and other funds), as for ETFs and funds dividends are treated as income and not subject to dividend allowance and band-dependent rates of 7.5% (basic), 32.5% (higher), 38.1% (additional)?
Dividend payments on ETFs will be taxed as income at the investor’s tax rate, just as with income from a traditional fund.
You’ll pay tax on any dividends you receive over £5,000 at the following rates:
7.5% on dividend income within the basic rate band
32.5% on dividend income within the higher rate band
38.1% on dividend income within the additional rate band[/i]
petronius wrote:This seems to me rather different from how dividends from individual shares are treated.
petronius wrote:I guess the situation gets more complicated for mixed-asset ETFs, such as Vanguard LifeStrategy...
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