SSGA FTSE All Share ETF (FTAL) Tax Treatment

[Chloe]

I had some of this ETF for 18 months and have now sold it. I didn't realise, but it is an accumulating ETF domiciled in Ireland. AJ Bell has not logged any 'dividend' or income associated with it and I am worried as to how to report it on my tax return.
Previously, I have had accumulation units of UK-based investment funds in my dealing account and the platform (probably HL) has recorded the automatically reinvested dividends on the annual tax voucher.
I shall call AJB tomorrow, but they are sometimes not very helpful and I would be grateful for informed advice.

Thanks in advance, CB

[helfordpirate]

Because it's an ETF your platform would not be informed of income generated by the fund that has not been distributed because it looks just like a share to them - unlike an OEIC or Unit Trust where the dividend would be notified even if it was accumulated and not distributed.

Instead you need to find a statement of "excess reportable income" from SPDR that says what income the fund received in excess of what it distributed (in this case £0). The report will be for a 12-month period and the income is deemed to have been received 6 months after that. That is the income you need to declare as dividend income (and also subtract from your Section 104 Pooled cost for CGT).

Unfortunately no broker that I know includes excess reportable income on their tax vouchers.

[helfordpirate]

That is the income you need to declare as dividend income (and also subtract from your Section 104 Pooled cost for CGT).

Sorry slip of the pen, "add" (not "subtract") the excess reportable income to your costs (thus reducing any gain)

[Chloe]

Helford pirate,
Succinct, comprehensible and to the point. Perfect.
Thank you
CB

[Chloe]

Helford pirate,
I should have had the foresight to ask the obvious supplementary question:

If I hold the ETF for only part of a year, do I pro-rate the calculated earnings and, if so, on what basis? For instance by day-count/365?

CB

By the way, following up on your advice, I found the SSGA fund excess income amounts are reported as a per-share amount in a huge table they have published in a newsletter round about mid-September for the last couple of years, e.g. under Quicklinks/Announcements at
http://tinyurl.com/gmu7uka.
There are mid-Sept items with names like 'Reporting Fund Status' and in there, at the end, there is a huge table of funds vs key data, including 'Per unit excess reportable income'.

[helfordpirate]

If I hold the ETF for only part of a year, do I pro-rate the calculated earnings and, if so, on what basis? For instance by day-count/365?

No. You take the number of shares in the ETF you owned on the last day of the accounting period, multiply it by the "per share excess reportable income" and treat that as being received by you on the distribution date which is 6 months after the end of the accounting period.

AFAIK there is no way to cope with partial ownership through the year or the equivalent of equalisation for funds.

[Chloe]

Helfordpirate,
Well, at least it's straightforward.
Once again, thank you.

CB

[genou]

If I hold the ETF for only part of a year, do I pro-rate the calculated earnings and, if so, on what basis? For instance by day-count/365?

No. You take the number of shares in the ETF you owned on the last day of the accounting period, multiply it by the "per share excess reportable income" and treat that as being received by you on the distribution date which is 6 months after the end of the accounting period.

AFAIK there is no way to cope with partial ownership through the year or the equivalent of equalisation for funds.

AFAIK you are supposed to proportion the excess reportable income according to the part of time you held the ETF and declare that on your tax return. For a sell that reduces the reportable amount, for a buyer it increases it compared to if not accounted for.

Don't forget to increase your cost base by the 'dividend' amount received + imputed, otherwise you'll end up paying too much in capital gains.

There's no time apportionment. From The Offshore Funds (Tax) Regulations 2009 Para 94 -

(3) The excess specified in paragraphs (1) and (2) is treated as made, on the fund distribution
date, to participants holding an interest in the fund at the end of the reporting period.

As 1nv35t said, there's no equalisation on ETFs, so whoever holds at the end of period gets the whole excess reportable income.