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Vanguard ETF dividends

Index tracking funds and ETFs
swill453
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Re: Vanguard ETF dividends

#403431

Postby swill453 » April 11th, 2021, 4:31 pm

Rajput1962 wrote:My VWRL divi in my Vanguard a/c didn't appear in my account until 7th April 2021 as shown in the cash statement, but the Corporate Actions statement says effective date 31st March 2021.

Which tax year do i declare it in?!! 2020-21 or 2021-22? :?

Good question. I guess nobody who cares (HMRC, for example) is going to have access to your cash statement, so the publicly available information (31st March payment date) is going to be what they see.

At AJBell Youinvest, even if the payment is credited late it gets the official payment date in the cash statement.

Scott.

genou
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Re: Vanguard ETF dividends

#403439

Postby genou » April 11th, 2021, 4:54 pm

swill453 wrote:
Rajput1962 wrote:My VWRL divi in my Vanguard a/c didn't appear in my account until 7th April 2021 as shown in the cash statement, but the Corporate Actions statement says effective date 31st March 2021.

Which tax year do i declare it in?!! 2020-21 or 2021-22? :?

Good question. I guess nobody who cares (HMRC, for example) is going to have access to your cash statement, so the publicly available information (31st March payment date) is going to be what they see.

At AJBell Youinvest, even if the payment is credited late it gets the official payment date in the cash statement.

Scott.


Final dividends are taxable on their due date, so 31/03. Interim dividends are taxable when paid. But then you get into a discussion of what "paid" means. I suspect these dividends were "paid" on 31/03, and it is banking/broker delays that pushed the arrival into our accounts backwards. More than you will ever want to know is here : https://www.gov.uk/hmrc-internal-manual ... l/ctm15205

mc2fool
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Re: Vanguard ETF dividends

#403448

Postby mc2fool » April 11th, 2021, 5:26 pm

Rajput1962 wrote:Which tax year do i declare it in?!! 2020-21 or 2021-22? :?

The year in which it appears in the Consolidated Tax Certificate issued by your broker soon-ish (variably so!) after the end of the tax year.

Lootman
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Re: Vanguard ETF dividends

#403452

Postby Lootman » April 11th, 2021, 5:44 pm

mc2fool wrote:
Rajput1962 wrote:Which tax year do i declare it in?!! 2020-21 or 2021-22? :?

The year in which it appears in the Consolidated Tax Certificate issued by your broker soon-ish (variably so!) after the end of the tax year.

Exactly. I have never needed to worry about which year a dividend payment is for because the CTC tells me. As long as my return agrees with the CTC it doesn't really matter whether it is right or wrong. In fact for my tax preparation I simply send my CTCs to my accountant without observation or commentary, and that is sufficient.

That said I do wonder why funds pay out dividends so close to the end of the tax year. I feel sure that most taxpayers would prefer to defer paying income tax on them by a year, which could be achieved by instead paying the dividend just a few days later, on April 6th, say. Some other fund managers do that as a matter of course.


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