Does anyone know what the tax implications on this are I have bought some Isxf http:

[joey122]

Does anyone know what the tax implications on this are

I have bought some Isxf http://uk.ishares.com/en/rc/funds/ISXF which is an equity traded on the LSE but which holds fixed income bonds.

They are also based in Dublin

Does anyone know whether dividends are taxable and whether you get the dividend is already tax deducted???

Finally does the dividened paid by ishares include a portion that they have paid to HMRC? Do you need to claim this back if you dont pay tax ?? ISA for example

[DonkeyRhubarb]

Does anyone know what the tax implications on this are

I have bought some Isxf http://uk.ishares.com/en/rc/funds/ISXF which is an equity traded on the LSE but which holds fixed income bonds.

They are also based in Dublin

Does anyone know whether dividends are taxable and whether you get the dividend is already tax deducted???

Finally does the dividened paid by ishares include a portion that they have paid to HMRC? Do you need to claim this back if you dont pay tax ?? ISA for example

The dividends are paid gross, and are taxable unless held in a wrapper like an ISA or SIPP. The tax treatment of fixed income investments (Gilts, Corp bonds) is essentially the same as savings income ie. 20% for basic rate tax payer; 40% for higher rate taxpayers.

If you are a non-taxpayer, you can use your personal allowance to offset the income.

If you hold this ETF in an ISA or SIPP then you don't need to do anything as dividends are paid gross and tax free.

If you hold it outside a wrapper, then you will need to declare the income on your tax return.

http://www.moneyweek.com/personal-fi...nds-93972.aspx

http://www.cii.co.uk/knowledge/train...s_2008-6-1.pdf
(See page 26 - tax treatment of fixed income securities)

[Gonzo]

Donkey's explanation applies if you have bought the ETFs in your own name.

If your company has bought them (and previous posts of yours suggest that might be the case) then you need more specialist advice from an accountant about the implications of converting your company from a trading company to an investment company.

The received view on here as always been "it's a really bad idea" so I am not sure that too many will have that experience.

[ASB]

Donkey's explanation applies if you have bought the ETFs in your own name.

If your company has bought them (and previous posts of yours suggest that might be the case) then you need more specialist advice from an accountant about the implications of converting your company from a trading company to an investment company.

The received view on here as always been "it's a really bad idea" so I am not sure that too many will have that experience.

Can't find it now, but there was an answer about treatment of fixed income securities in the corporate name by one of the accountants. Risk of becoming an investment company is only really relevant if the company holds a large portfolio rather than is parking funds for a while (but yes, it is a possibility).