iShares on tax retirn
Posted: June 22nd, 2021, 10:46 am
I have always filled in my tax return myself and ishares have always confused me.
Last year the HMRC tax return calculation allocated ishares in ISF and similar equities from IRL to the 32.5% higher rate category but this year they have ended up in the 40% calculation.
This year I first put the ishares in the less than £2000 income box but unsurprisingly that was rejected as the amount exceeded £2000. I then put the amount in the foreign income section box with 0% tax credit as the dividend statement shows no tax. Last year the tax return boxes were slightly different and I may have entered the amount in a different box.
What is the correct higher rate tax? I think it should be 32.5% so why has the automatic calculation used 40%? Has it assumed that the income is interest not dividends or is the tax credit responsible?
Last year the HMRC tax return calculation allocated ishares in ISF and similar equities from IRL to the 32.5% higher rate category but this year they have ended up in the 40% calculation.
This year I first put the ishares in the less than £2000 income box but unsurprisingly that was rejected as the amount exceeded £2000. I then put the amount in the foreign income section box with 0% tax credit as the dividend statement shows no tax. Last year the tax return boxes were slightly different and I may have entered the amount in a different box.
What is the correct higher rate tax? I think it should be 32.5% so why has the automatic calculation used 40%? Has it assumed that the income is interest not dividends or is the tax credit responsible?