[UK] Tax declaration, dist vs. acc, excess reportable income

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jg12345
Posts: 421
Joined: Fri Dec 11, 2020 12:03 pm

[UK] Tax declaration, dist vs. acc, excess reportable income

Post by jg12345 »

Hi all,
I am for the moment ordinarily and for tax purposes resident in UK.

I have always thought I should only get dist funds to have an easier life when reporting to HMRC (something I have done today), because [the theory says] distribution for distribution funds are explicit and visible in your account, therefore there's no need to go and check UKFRS documents for excess reportable income, therefore using dist funds saves time.

However, I found out this is not the case. An example is Vanguard FTSE all world EUR dist, which is dist, and has excess reportable income too, 0.114l USD per unit in the most recent year (https://www.vanguardinvestor.co.uk/cont ... e-2020.pdf - IE00B3RBWM25 Vanguard FTSE All-World UCITS ETF)

In other words, there's no time saved in choosing a dist fund! because I anyway have to go look for excess reportable income in UKFRS documents to ensure I declare all of my dividend income correctly to HMRC.

Am I understanding this correctly?

If that's the case, the time-saving benefit of using dist vs. acc is minimal (maybe a bit more mess with currency exchange rates and quarterly dividends), and I may prefer acc funds from now on so that dividends get reinvested automatically.
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