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ETF taxation

Practical Issues
Hariseldon58
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ETF taxation

#328371

Postby Hariseldon58 » July 24th, 2020, 9:16 am

ETF taxation is a little more complex than most other collective investments.

Excess Reportable Income catches you even when regular dividends are paid and often the trigger date is a holding in one year and the deemed receipt six months later in another tax year....

Useful article published on Just Etff
https://www.justetf.com/uk/news/passive-investing/how-etfs-are-taxed-in-the-uk.html?utm_campaign=20200724-uk-newsletter&utm_content=Mailing_12108999&utm_medium=email&utm_source=CleverReach

1nvest
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Re: ETF taxation

#328520

Postby 1nvest » July 24th, 2020, 7:15 pm

Thanks.

Any idea what occurs in January 2021 when current EU membership rules that allow retail funds to be domiciled in one member state and sell across the bloc - has the UK outside of that block? Irish domiciled ETF's would presumably need to comply to UK standards/regulations and have been authorised to sell their fund within the UK's internal market ??

In which case excess reportable income could be a thing of the past, as, at least as far as I am aware, there are no UK ETF's. Anyone holding such funds into 2021 could see all of capital gains being considered as income taxable by HMRC as per any other foreign non approved funds ??

2017 had UK investors holding over £105Bn in ETF's - primarily Ireland, whilst in the other direction EU citizens only had £65Bn invested in UK domiciled funds. Seems a easy target to have a net £40Bn inflow of 'trade' and at the same time a expansion in UK domiciled funds (financial sector jobs).

scrumpyjack
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Re: ETF taxation

#328527

Postby scrumpyjack » July 24th, 2020, 7:55 pm

AFAIAA there is no problem with offshore funds having UK Reporting status. All they have to do is commit to following the rules. The Irish ETFs will be able to carry on as they are

https://www.kpmgreportingfunds.co.uk/guidance


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