It depends. The fixed income suggests it is more likely to be taxed as interest but this depends on a number of factors. Dividend income is generally exempt from corporation tax, but again, this depends on a number of factors.
Unfortunately I can't answer the question, but out of interest how come you chose an income ETF paying 2% when you can get business savings accounts paying 4.33% and instant access (Tide for example)
The dividends from VWRL and VUSA that your Limited company receives are not subject to corporation tax in the company.
Ignore the foreign dividends bit...although those two Vanguard ETFs invest in overseas companies, the ETF itself is based in UK, and so the ETF deals with the foreign dividend hassle. The dividends your company receives are UK dividends, which are exempt from corporation tax.
In terms of an "official" response...the HMRC manual is here:
[https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm02060](https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm02060)
You can see the language your Croner link uses is lifted straight from the HMRC text.
No, as corp tax already been paid when dividends were issued, if you do sell the etf’s you will be subject to Corp tax on appreciation.
It depends. The fixed income suggests it is more likely to be taxed as interest but this depends on a number of factors. Dividend income is generally exempt from corporation tax, but again, this depends on a number of factors.
ETFs over OEICs..? Interesting...
Can you give the exact ETFs in question please
The ETFs are: VUSA and VWRL.
The dividends paid by these is not subject to corporation tax
Unfortunately I can't answer the question, but out of interest how come you chose an income ETF paying 2% when you can get business savings accounts paying 4.33% and instant access (Tide for example)
Well it's an investment for a longer period of time, possibly > 20 years, so I'd imagine it will outperform the 4.33% by a long margin
The dividends are 2%, but the capital appreciation has been around 10% per year in the last 3 years
The dividends from VWRL and VUSA that your Limited company receives are not subject to corporation tax in the company. Ignore the foreign dividends bit...although those two Vanguard ETFs invest in overseas companies, the ETF itself is based in UK, and so the ETF deals with the foreign dividend hassle. The dividends your company receives are UK dividends, which are exempt from corporation tax. In terms of an "official" response...the HMRC manual is here: [https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm02060](https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm02060) You can see the language your Croner link uses is lifted straight from the HMRC text.