DORE - interest streaming regime

[Gan020]

https://www.investegate.co.uk/downing-r ... 00116377C/

Extract "A portion of the Company's dividends is designated as an interest distribution for UK tax purposes. The interest streaming percentage for the Q4 2021 Dividend is 66%."


I hold my shares outside of a tax wrapper and I'm subject to appropriate tax.

I have recently received my dividend from HL. They have treated it as a 100% standard UK dividend and this will be subject to tax at the dividend rate.

However, the way I read the RNS is that 34% would be a dividend and 66% would be interest.

Have HL got this wrong? Or am I misunderstanding the rules?

The reason is that I organised my income including dividends over the £2,000 allowance to come to almost exactly the £12,570 personal allowance limit, which then gave me another £5,000 allowance to fill up with interest.

If I have to treat the dividend from DORE as a 100 % dividend and not part interest I will have to pay 7.5% tax on the amount over £12,570 whilst also reducing my £5,000 interest allowance on a £1 for every £1 over

[genou]

It looks like HL have got it wrong. The trust is certainly allowed to designate part as interest, and appears to have done so.

[Alaric]

However, the way I read the RNS is that 34% would be a dividend and 66% would be interest.

Have HL got this wrong? Or am I misunderstanding the rules?

r

Have they sent out the usual statement of dividends and interest for tax purposes? That would be the definitive source of what they think happens. Dividends on these types of IT are usually split, ii seem tp manage it.

[Gan020]

To conclude this thread. HL agreed with me they had allocated the DORE distribution incorrectly and re-issued my tax certificate with the correct figures