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Interest Income from Bond ETF trackers where does it go the Self Assessment Return

Practical Issues
Hariseldon58
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Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#132875

Postby Hariseldon58 » April 17th, 2018, 5:14 pm

I am looking at this years tax return and have interest from iShares and Vanguard Bond Tracker ETF's.

The income is interest rather than Dividends and wondered on what section of the tax return it goes ?
I wondered if anyone has any knowledge of this.

genou
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Re: Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#132879

Postby genou » April 17th, 2018, 5:35 pm

Hariseldon58 wrote:I am looking at this years tax return and have interest from iShares and Vanguard Bond Tracker ETF's.

The income is interest rather than Dividends and wondered on what section of the tax return it goes ?
I wondered if anyone has any knowledge of this.


I'd guess these are Foreign Income, so you should put them on the Foreign pages.

Stanley117
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Re: Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#133038

Postby Stanley117 » April 18th, 2018, 2:05 pm

Hariseldon58 wrote:I am looking at this years tax return and have interest from iShares and Vanguard Bond Tracker ETF's.

The income is interest rather than Dividends and wondered on what section of the tax return it goes ?
I wondered if anyone has any knowledge of this.


Do you mean Ishares Corporate Bond ETFs (ERNS, IS15 and ISXF) and Vanguard Gov Bond ETF (VGov) ?

Hariseldon58
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Re: Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#133068

Postby Hariseldon58 » April 18th, 2018, 3:45 pm

@Stanley
yes I am thinking of iShares IS15 and SLXX UK corporate bonds and Vanguard VUTY and VUCP US Treasury and US corporate bonds respectively.

@Genou
Foreign pages had crossed my mind but I vaguely remember coming across a comment that if foreign interest income was below £2,000 or similar the income went on the normal pages. Hence I was interested if anyone has a definitive view. I use foreign pages at present for foreign dividends (various reporting/ distributing status ETFs) as they exceed £300

genou
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Re: Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#133071

Postby genou » April 18th, 2018, 4:26 pm

Hariseldon58 wrote:@Stanley
yes I am thinking of iShares IS15 and SLXX UK corporate bonds and Vanguard VUTY and VUCP US Treasury and US corporate bonds respectively.

@Genou
Foreign pages had crossed my mind but I vaguely remember coming across a comment that if foreign interest income was below £2,000 or similar the income went on the normal pages. Hence I was interested if anyone has a definitive view. I use foreign pages at present for foreign dividends (various reporting/ distributing status ETFs) as they exceed £300


That'll be ( from the notes on SA100 )

5 Foreign
Use the ‘Foreign’ pages if you received:
• interest (over £2,000) and income from
overseas savings – if your only foreign income
was untaxed foreign interest up to £2,000,
you can put this amount in box 3 on page
TR 3 of your tax return instead of completing
the ‘Foreign page’ (see page TRG 5)


which I hadn't noticed before. But as you have dividends as well, you should use the foreign pages.

GPhelan
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Re: Interest Income from Bond ETF trackers where does it go the Self Assessment Return

#133075

Postby GPhelan » April 18th, 2018, 4:51 pm

"you can put this amount in box 3" is not the same as 'you should' or 'you must'!
You pay more tax for foreign income reported in this way, but you might consider that a worthwhile price for avoiding the time you would have to invest in understanding and submitting the Foreign pages.


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