The Lemon Fool

Should global trackers such as VWRL and HWMO have the dividends recorded as foreign income on tax returns?


Thanks in advance,

SB

Snowbadger wrote:Should global trackers such as VWRL and HWMO have the dividends recorded as foreign income on tax returns?

I think the answer is yes, but not because of what they invest in, but because they are domiciled in Dublin, assuming they are. You should receive a statement of dividend income for the tax year from your platform or Broker which itemises where income comes from.

Alaric wrote:

Snowbadger wrote:Should global trackers such as VWRL and HWMO have the dividends recorded as foreign income on tax returns?

I think the answer is yes, but not because of what they invest in, but because they are domiciled in Dublin, assuming they are. You should receive a statement of dividend income for the tax year from your platform or Broker which itemises where income comes from.

Many ETFs are domiciled in either Dublin or Luxembourg, for tax reasons. Either way it counts as foreign income. There are also ETFs domiciled in the US, Canada and elsewhere. As far as I know there are no UK-domiciled ETFs but I might be wrong about that.

The country of domicile matters because it is the tax treaty that country has with other countries that matters, and not the tax treaty that the UK has with those other countries.

Thanks for the prompt response as I am about to start filling in the Self Assessment forms. Am I correct in thinking the tax treatment is no different to a uk dividend.

Cheers,

SB

Snowbadger wrote:Thanks for the prompt response as I am about to start filling in the Self Assessment forms. Am I correct in thinking the tax treatment is no different to a uk dividend.

Cheers,

SB

It depends if there is any withholding tax. Usually nil for RoI ETFs.