Tax of dividends via Ltd company account

General
1

Do dividends paid via ETFs come net of corporation tax?

Or do we pay corp tax on dividends received?

thanks in advance

2

Hi Ani, InvestEngine doesn’t deduct tax from income or capital gains on your Business Account. However, your business may need to pay tax on these investment returns.

If you are investing as a UK-based company, your returns are subject to the UK corporation tax regime.

This means that interest income (from bond ETFs, for example) and realised gains (net of losses) are potentially liable for corporation tax at 19%. However, dividend income (from equity ETFs, for example) is usually exempt from corporation tax. InvestEngine portfolios generally earn both interest income and dividend income.

Please see our FAQ How are investment returns from my InvestEngine Business Account taxed? for more information.

Best wishes,