DRIP dividends on shares are definitely treated that way here for what it's worth...
DRIP dividends on shares are definitely treated that way here for what it's worth...why can't the dividends be taxed at the marginal rate regardless of whether they are distributed or rolled up? Is that what happens in the UK?
They can be, but it doesn't really achieve the aim of simplification of the tax regime. You'd have to find and separate out the rolled-up dividend amounts from your ETF and report them annually which isn't straightforward. And then remove the amounts already taxed from your gain at final disposal.why can't the dividends be taxed at the marginal rate regardless of whether they are distributed or rolled up?
Yes, but the average UK investor will have their ETFs in a tax-free ISA and not have to worry about it.Is that what happens in the UK?
So you think it's by design, and 33% is to actively encourage people to invest in funds over shares?retail investors should not be trading individual shares or similar instruments
Untrue. Large conglomerate company stocks make a good approximation.Only a larger investor can replicate the portfolio effect of a fund or ETF.
And this would arguably hamstring your potential returns.Funds have the same exposure to FX risk if they hold equities denominated in a foreign currency. The only way to avoid FX risk would be to invest in something that exclusively holds Eurozone equities, or to buy euro-hedged funds which are more expensive.
why can't the dividends be taxed at the marginal rate regardless of whether they are distributed or rolled up? Is that what happens in the UK?
| Dividend Taxes | |
| Average | 20% |
| Max | 51% |
| Min | 0% |
| Average excl 0% | 22% |
| Min excl 0% | 5% |
Yes - life companies won't like this as the simplicity of funds being taxed at source at a composite rate with no further requirement to pay tax is key to their offering, it was always so. They would much prefer the current regime with the Exit Tax reduced from its "emergency" rate of 41% to the DIRT rate.why can't the dividends be taxed at the marginal rate regardless of whether they are distributed or rolled up? Is that what happens in the UK?
Is the actual report available. That link sends me in circles...
Which one is treated as an equity? I presume this means a 33% tax rate?If someone wants total return.. I know of 2 ETFs straight off.
In fact, one is treated as an equity in Revenue's eyes.
The venue where the ETF shares are listed is irrelevant.German listed UCITS ... global dividend ETF
Policy on savings is not usually noted as a general election winner. But a number of parties are believed to be looking at the issue for their manifestos. With more than €150 billion of household savings sitting in bank accounts, according to the latest Central Bank figures, there are policy reasons for trying to attract some of it into equity-type investments – both to provide a better return for investors and to channel money into Irish businesses.
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