glen divvy HL accounts25 May 2018 18:39
right then, so i hold a lot of these and hadnt got a bludy clue why on the HL platform it hadnt paid the dividend as 'income', rather as a 'return of capital' as per usual.
Spoke to the nice man at HL today for an explanation and although not 100% on what he was going on about the jist of it is this.
Glen didnt pay a dividend this time around, it returned holders expected dividend payment by way of a capital return to the same value as the quoted dividend. Hence HL showing a return of capital rather than an income payment on the capital tab in your account. I have received the cash its just shown differently, so alls good.
i queried how this effects my calcs for my �2k dividend allowance, as with my holdings i smash this limit into the long grass. I was advised (and this sounds excellent) that as it was a 'return of capital' the monies do not count against the �2k annual allowance and can be ignored, its not income/dividend its a capital return - Woohoo say i, less tax to pay.
so i asked about the annual capital gains allowance, if its being paid as a 'capital return' and its effect on that as i smash that each year also and have a perpetual struggle to move my holdings into isa's each year. i was advised that the 'return of capital' doesnt affect that either, its not a capital gain but a 'return of capital' and can be ignored when your calculate your CG at the end of the year. Double Woohoo.
Sounds a great tax dodge, confusing as hell to a numpty like me but if Ivan wants to save me some cash who am i to argue.
Would suggest that holders, especially big ones, of these outside of Isa's who are more clued up on the tax rules than stupid me have a little look into this and check what i've been told, could work out very well if i've got the right end of the stick from mr HL.
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