Tax on reinvested dividends in unit linked investments

J

journeyman10

Guest
Hi All,

A question on dividends for unit trusts and unit linked funds.
If the dividends from the funds are automatically reinvested in the fund, are they liable for tax ? I've read on the web sites of some Irish unit linked funds that the only tax liability is an exit tax of 23% (also payable on 8th anniversary if not encashed).
Is this correct ? No tax is liable on reinvested dividends with these funds ?

Are the rules the same for foreign funds? And for unit trusts ?

many thanks,

journeyman
 
generally funds are not taxable on any income or gains they receive.

kpmg have a very good publication at [broken link removed] which should answer all your queries
 
Thanks very much for the link. Explains it all.


journeyman.
 
Reading the KPMG site does it mean that as an Irish resident and I want to buy units in a UK fund I have to inform the revenue?
 
Hello,

The link is really useful but would anyone know how to account for the sale of these funds in your income return?

João
 
The exit tax of basic rate plus 23% is deducted by the relevant company on chargeable event unless you declare that the tax is not applicable and then it is paid gross, e.g. non resident. You have no further requiement to reture this to the revenue as it is deemed that the appropriate tax is paid. This is applicable for invetments taken out after I think 1st Jan 2002 (could be 2001), prior to this it was on a non gross rollup basis and appropriate tax was deducted from the fund annually, bit like corporatation tax applying to the fund but this also deemed the tax liability of the policy holder paid.
 
jp627 said:
Hello,

The link is really useful but would anyone know how to account for the sale of these funds in your income return?

João
Click to expand...
This is a different question to the original one posted here which was specifically about dividends paid and reinvested within the fund.
 
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