Declaring Tax - UK

[Jordan3]

I’m new to investing and I’m currently using the invest account, not ISA.

Being in the UK, what do I need to be aware of regarding tax. Do I have to declare anything? If so, what, when and how.

Cheers
Jordan

[Richard.W]

Welcome to the forum. If you search you will find many posts already in this forum that touch on UK tax. I recommend reading this reliable, simple-to-read and comprehensive guide:

Personal tax: Tax on savings and investments - detailed information - GOV.UK

Do ask about specifics if you have questions after reading in the above the links under the heading Tax on Shares.

Something that is a bit complicated is the taxation of ETFs. These have so-called excess reportable income that is subject to dividend tax and which requires a bit of work to figure out, and affects both dividend and capital gains tax liability. Both accumulating and distributing ETFs have this. See here

Share your pie recipes

Unfortunately no. In a taxable account, accumulating ETFs are also taxable each year on the dividends that are retained and rolled up in the fund. You are expected to refer to Vanguard’s web page and find the “excess reportable income” that has been so rolled-up and report it for dividend tax. Expand the tab called “Report to Participants (current and previous years)” at this page To give an example in the first line we read that Vanguard S&P 500 UCITS ETF USD Accumulating Share (VUAA) had $0.1…

Another thing to bear in mind is that all calculations are to be done in GBP so you need to keep records of the exchange rate applicable at the time of any transaction (purchase or sale) or dividend payment in other currency.