Are iShares ETF dividends "foreign"?

[MrUnsure]

I'm considering buying an iShares ETF, not in the ISA because it is full, but I'm concerned about

https://www.gov.uk/tax-foreign-income/paying-tax

You do not need to fill in a tax return if your only foreign income is dividends under £300 in total and you do not have anything else to report.

Given that iShares are domiciled in Dublin, does that make them "foreign", even though they are in GBP?

[Chrysalis]

I believe so, yes.

[MrUnsure]

I believe so, yes.

Ah, damn it. I don't want the hassle of a tax return so I won't bother.

[Lootman]

I believe so, yes.

Ah, damn it. I don't want the hassle of a tax return so I won't bother.

The other issue with ETFs in a taxable account is the possibility of dividend income that is accrued in a tax year but not paid out in that same tax year, whilst still being taxable in that tax year. It is called Excess Reportable Income and is not reported in the usual way. So you have to dig around a bit to determine it. See this thread:

viewtopic.php?f=55&t=16479

This is all in the category of being annoying rather than being fatal. But it is still enough for me to avoid holding ETFs in a taxable account, even though I am happy having foreign income in one, and of course I do self-assessment returns anyway.

That said I love ETFs and have a number in tax-sheltered accounts.

[XFool]

I believe so, yes.

Ah, damn it. I don't want the hassle of a tax return so I won't bother.

Very understandable, IMO.

[GoSeigen]

Ah, damn it. I don't want the hassle of a tax return so I won't bother.

Self-select ISAs are your friend...

Failing that, isn't there a reporting exemption for small amounts of income?


GS