IFM03350 - Authorised investment funds (AIFs): taxation of investors within the charge to IT: distributions

Dividend distributions

In the hands of an investor (unit holder) within the charge to IT, dividend distributions are treated in the same manner as any other UK company dividend.

Interest distributions

Prior to 6 April 2017, income tax was normally deducted at source by the fund at the basic rate (IFM02800) and in such cases the investor was treated as receiving yearly interest with IT deducted at the basic rate.

From 6 April 2017, no tax is deducted on interest distributions.