COMPLETING YOUR TAX RETURN. WHAT YOU NEED TO TELL THE TAXMAN 2007 - 2008

This factsheet explains what information you should report to HM Revenue and Customs when you receive *income* (distributions) from an investment in an authorised *unit trust* or *open-ended investment company* (OEIC).

TAXATION OF AUTHORISED UNIT TRUST AND OEIC DISTRIBUTIONS

Your tax position will depend on the type of *distribution* you receive, which in turn will depend on the type of authorised unit trust or OEIC you invest in. At the time of writing:

Authorised unit trusts and OEICs invested in *gilts*, *bonds*, or *money market instruments* and bank deposits (cash funds) pay out *interest distributions*; and
Authorised unit trusts and OEICs invested in *shares* usually pay out *dividend distributions*

If you have any offshore funds please click here.

REMEMBER

If you have invested in an authorised unit trust or OEIC via a *stocks and shares* ISA you will not have to pay tax on income earned. Income from investments in an ISA do not have to be declared on your tax return.

Whenever the fund in which you are invested, outside an ISA, pays a distribution, you should receive a tax voucher from the *fund manager* showing the amount which you are due to receive and the amount of any tax on the distribution which has been paid by the manager. The information on all vouchers received during the tax year should be transferred to your tax return. If you have not received a voucher, ask the manager for one. Where you have income of the same type from more than one fund, you will need to produce aggregate figures to insert in the appropriate boxes. The following notes explain how this should be done.

next>>