Important information about your Consolidated Tax Voucher(s)
 

Taxation

Distributions shown on your Consolidated Tax Voucher (CTV) are classified as either interest or dividend. The income tax consequences are set out below:

Income Tax: Dividend Distributions

You should disclose the Gross Distribution Amount in your annual tax return. Dividend distributions carry no tax credit and are paid free of withholding tax which should be reported in your tax return as received gross.
For the tax year 2018/2019, UK residents each receive a tax free dividend allowance of £2,000 per annum.
The total amount of dividends received in excess of this allowance will be treated at 7.5% within the basic rate band, 32.5% within the higher rate band and 38.1% thereaſter.

Income Tax:  Interest Distributions

You should disclose the Gross Distribution Amount in your annual tax return. Interest distributions payable aſter 6th April 2016 will be paid gross i.e. without any income tax deduction. However, you may still be required to pay income tax on this income depending on available tax allowances and other income you may have received. For 2018/2019, UK residents each receive up to £1,000 Personal Savings Allowance if you are a Basic Rate taxpayer and £500 if you are a higher rate tax payer. Additional Rate taxpayers receive £Nil Personal Savings Allowance.
Should you have any questions regarding your tax

Non-UK Residents

Non-UK residents should seek tax advice.

UNIT/SHARE GROUPINGS

Group 1 units or shares are those units/shares held prior to the distribution period.

Group 2 units or shares are those units/shares purchased during the distribution period and which are held at close of business at the end of the distribution period. Group 2 units/shares may constitute all or part of your total holdings.

EQUALISATION RELATING TO GROUP 2 UNITS/SHARES

‘Equalisation’ is accrued income included in the price of Group 2 units or shares purchased during the distribution period.  It should be deducted from the cost of units or shares for capital gains tax purposes and is not subject to income tax.

FURTHER INFORMATION

A duplicate CTV will only be issued in exceptional circumstances, and a charge may be made for this.

CTV’s should be retained for tax purposes as evidence for HMRC or your tax authority.

Tax documentation is only sent to the first named unit or share holder. If you are the first named joint unit or share holder or have been during the period, you should provide the other joint unit or share holder with the relevant tax information.

If you have any questions or require any additional information, please contact our Administration Centre on 0345 777 5511.

Download the PDF

 

This information is provided to you for information purposes only. We do not provide investment, tax or any other type of advice and accept no liability for any reliance placed on the information provided