Tax on Vanguard LS60 dividends?

[LittleWeed]

I hope somebody can clarify this for me.

If I hold Vanguard LS60-Income units in a taxed account, and I'm a basic rate taxpayer, is the whole of the dividend taxed at dividend tax rates, or is some of it taxed at savings rate due to the LS60 being 40% bonds?

[fca2019]

My understanding is the dividend is paid gross without deducting tax. If your dividends are below 2k p.a. you don't need to do anything. Above that you need to tell hmrc and they will adjust you tax code or you put on your tax return if you need to do one.

As a basic rate tax payer you would pay tax at 7.5% on the amount over the allowance. A sweet deal!

[fca2019]

It all counts as dividend, not interest.

And if over 2k start moving over to an investment isa. Cheers