Updated information received:
Gross declaration forms
To date, if a Fund Manager offers a Gross Share Class of a Fund, then a Gross Declaration form has been required at the point of investment or transfer to show eligibility to invest. IFDS understands that from 6 April 2017 these declarations will no longer be required for funds that pay interest distributions. Please note this guidance is not applicable to requirements for PAIFs.
Impact for IFDS Fund Groups
A number of Fund Managers have completed shareholder notifications already, or continue to plan any potential impact to the funds they administer and their unitholder base. Once notification is available to investors, a link to the document will be made available below:
- Architas
- BlackRock
- Columbia Threadneedle:
Mailing - http://www.columbiathreadneedle.co.uk/media/10504536/en_gross_payments_further_information.pdf
Q&A - http://www.columbiathreadneedle.co.uk/media/10504530/en_cti_gross_payments_qa.pdf
- Investec: - http://www.investecassetmanagement.com/document/pdf/Investec-OEIC-Gross-Net-Shareholders-January-2017_en.pdf
- J.P. Morgan
- Standard Life: - http://ifdsportal.com///distributorportal.co.uk/news/entry/sli-distribution-net-to-gross
The following Fund Groups do not currently offer funds that pay interest distributions:
Fundsmith
Liontrust
McInroy & Wood
Neptune
Schroders Life
SVM
Original communication:
From 6 April 2017, the UK Government is changing tax rules for interest distributions, removing the requirement for the deduction of 20% income tax at source for OEIC, Unit Trusts and Investment Trust companies.
No physical changes will be 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 each DOLR report can be found at http://ifdsportal.com/documents/distributoronline-guides
As a reminder, IFDS does not provide advice on taxation.
Please see http://www.ifdsportal.com/news/entry/dividend-tax for details of previous tax changes impacting dividend distributions (effective April 2016).