Tax - Accumulation ETF's and Funds

[nick28]

Please could someone either clarify or correct my tax treatment for investments held in a general trading account

For Accumulation funds the dividends received are included as income in my annual tax return and the same amount added to the base cost for CGT purposes, for any subsequent sale

For Accumulation ETF's (I have Vanguard funds such as VHVG, VWRP etc) there is no reportable income and so nothing to report or add to my CGT base cost - the assumption is that any gain of sale includes any increase in value of the ETF. I have heard references to Excess Reportable Income - but this doesn't appear on my platform annual statement

Any clarification would be much appreciated

[Countdown]

I'd be interested in this also.

Fortunately most of my investments are in an ISA so I don't need to worry. However I have about £10k in a GIA which generates about £500 a year in dividends. I'd be interested in knowing how it would be reported / taxed if it went above this amount.

[PM3]

Its a bit of a PITA for the Irish domicile ETF's ( eg my VHVG ) . The ERI is NOT listed on annual tax certificate summary

There is dividend and thus tax due which is calculated from Excess Reportable Income . This of course is then offset to CGT
Basically you calculate the number of shares you hold at last day of the " Excess Reportable Income" typically 30June 2025 ( eg for 25/26 tax year ) multiply by the amount they state in the punished sheet . The relevant tax year is per "Fund Distribution Date" which in this case would be 31 Dec 2025

Its clumsy but read the " UK Reporting Fund FAQ guide " here https://www.vanguardinvestor.co.uk/content/dam/int... .
for this tax year due ( 25_26 ) listed in this table https://fund-docs.vanguard.com/Vanguard_Funds_Plc_... filter for Acc USD funds and easy to find

All on this page https://www.vanguardinvestor.co.uk/investing-expla...

[NortonES2]

This is why my GIA has VWRL and my ISA has VWRP

[butchstewie]

Normally you have to go hunting for ERI on the fund providers website and it'll be buried away somewhere in their regulatory documents.

[nick28]

Thanks all for the clarification. Much appreciated!

[butchstewie]

This is why there's a very good case for holding UK domiciled funds in INC units in unwrapped accounts - it's way more difficult than it should be otherwise