Tax Rates

These tax rates are used for three purposes:

• Telekurs. The Telekurs data feed includes details of dividend and interest payments net of tax. The tax rates are used to calculate the tax credits of dividend and interest payments in the Securities History.
• Data Entry. The system can automatically calculate the tax amounts on dividends and interest payments in Data Entry. To use this function it needs to be switched on in Database Parameters. It only applies to clients with a nominal ledger.
• The Gross to Net button in the Autopost. This feature is very obscure. If you know what it is, fine, otherwise don’t worry about it!

The Tax Rates can be set up for each UK tax year. So they may not be suitable in other countries.

For each tax year there is a rate for dividends and a rate for interest payments. If a security is set as a Unit Trust then the system decides by itself whether to use the dividend tax rate or the interest tax rate. It does this by looking at the security’s setting for "UK Unit Trust Interest". If this is ticked then it uses the interest tax rate. Otherwise it uses the dividend tax rate.