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How UCITS ETFs are taxed in United Kingdom

A quick reference for United Kingdom-resident investors holding UCITS ETFs — dividend and capital-gains tax, the reduced US withholding rate via tax treaties, allowances, and whether accumulating or distributing is more efficient.

Dividend tax
8.75%
Capital gains tax
18%
US withholding (treaty)
15%
Wealth tax
No
Tax-free allowance
500 GBP
Ireland tax treaty
Yes

Tax notes for United Kingdom

8.75% dividend tax at basic rate (33.75% higher, 39.35% additional). £500 dividend allowance. CGT 18%/24%. ISA and SIPP accounts make UCITS ETFs fully tax-free — the standard route for UK investors.

Accumulating vs distributing: Use an ISA — eliminates all dividend and capital gains tax. Learn more →
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Calculate your exact net income

Upgrade to Pro to model any UCITS ETF in United Kingdom — withholding, local tax, allowances and your real take-home income.

Related: UCITS withholding tax explained · UCITS vs US ETFs · All countries

Educational information only, not tax advice. Rates change and depend on your circumstances — verify with a qualified adviser.