Changes To Tax On Dividends

From 6 April 2016, changes will be made to the payment of dividend income from UK Unit Trusts and OEICs (both Acc and Inc units).  Where dividends are currently paid net of 10% tax, this will change and the 10% tax credit will no longer be applied meaning that all dividend income will be treated as gross. 

No physical changes have been made to DistributorOnline Reporting (DOLR), however you may see a difference in the distribution data reported under your recipient.  You can continue to review all information relating to Distributions via the Final Distribution report, with the following fields indicating any changes to dividend income taxation:

Column P 'Distribution Type' will identify if the payment is Dividend or Interest based.  

Column U 'Tax %', reflects the tax applied to the Distribution, and is therefore where you can expect to see these changes.

Guidance and user guides for DOLR can be found at http://ifdsportal.com/documents/distributoronline-guides.

As a reminder, IFDS does not provide advice on taxation.