DORE - interest streaming regime
Posted: April 14th, 2022, 2:40 pm
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
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