uk investment funds: are notional distributions taxable in France?

[Chardie]

I'm clutching at straws posting this but you never know someone might know the answer! Does anyone know if the  notional interest/ dividends distributions on a Uk managed (accumulation) investment fund are declarable and taxable in France? HMRC tax notional distributions as if they were income even though not received by the investor. I have trawled through countless different combinations of searches on google and even painfully read and translated the relevant article 20 of the impots.fr massive tax manual but can't seem to find an answer to my question as notional distributions aren't referred to only distribution income. (Note I am NOT referring to investment funds with an element of life cover which would be the equivalent of an ass.vie.)

[JohnFB]

If i remember right, they are income and should be declared. However you have to be careful then calculating your capital gains not to double count the distribution as a gain only the increase in value. Makes for wonderful spreadsheets especially if capitaln gains are reduced for length of ownership. Thats why i avoid accumulation funds like the plague. There is usually an income alternative.

JFB

[parsnips]

[quote user="Chardie"]I'm clutching at straws posting this but you never know someone might know the answer! Does anyone know if the  notional interest/ dividends distributions on a Uk managed (accumulation) investment fund are declarable and taxable in France? HMRC tax notional distributions as if they were income even though not received by the investor. I have trawled through countless different combinations of searches on google and even painfully read and translated the relevant article 20 of the impots.fr massive tax manual but can't seem to find an answer to my question as notional distributions aren't referred to only distribution income. (Note I am NOT referring to investment funds with an element of life cover which would be the equivalent of an ass.vie.)

[/quote]

Hi,

  It's quite simple ; if the number of shares or units in the fund always stays the same , and the gains/interest are added to the NAV , then you need not declare as the eventual capital gain when taxed , will contain the added value .  If you declare as income the gains will in effect be taxed twice.

      If the gain is added to your holding in the form of extra shares/units , then it should be declared , as it is income which you have chosen to reinvest .

[Chardie]

hi - yes the number of the units stays the same. I will have to try and see if HMRC will stop taking the 20% tax on the notional distributions.

Thanks.