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That's why accumulating index funds are better option.


In the UK it doesn't matter. Even dividends paid inside an accumulating fund or ETF are still considered income and, if held outside of a tax sheltered account, you're supposed to (somehow) figure out how much income tax to pay and declare it.

Most people get away with doing this because they use tax sheltered accounts, or the amount would be below their tax-free allowance.

Ref: "Accumulation units – the income tax loophole that never was" - https://monevator.com/income-tax-on-accumulation-unit/




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