Hi,
I was wondering about the taxation treatment of Fixed Income (i.e. Bonds).
It appears to me that dividend/coupon is treated the same as regular income (subject to one's marginal tax rate) whereas any increase in the clean price is subject to CGT. Is this correct?
Is accrued interest treated as regular income, or is it bundled into the capital cost? I would assume the former.
I just mean for regular plain vanilla fixed coupon bonds.
If I have un-invested money left sitting there with the broker for a short period, and I get paid "interest" on that, is that also subject to regular income tax or does DIRT apply there?
I was wondering about the taxation treatment of Fixed Income (i.e. Bonds).
It appears to me that dividend/coupon is treated the same as regular income (subject to one's marginal tax rate) whereas any increase in the clean price is subject to CGT. Is this correct?
Is accrued interest treated as regular income, or is it bundled into the capital cost? I would assume the former.
I just mean for regular plain vanilla fixed coupon bonds.
If I have un-invested money left sitting there with the broker for a short period, and I get paid "interest" on that, is that also subject to regular income tax or does DIRT apply there?