Please note
​Tax treatment depends on your individual circumstances and may be subject to change in the future. This summary is provided for informational purposes only and relates to the position of a UK resident individual taxpayer. We do not offer advice on tax and if you are in doubt about your own position you should seek professional advice.

Your investment return on Abundance is split into three parts:

For the majority of the investments on Abundance the investment income is treated as interest from a tax perspective. This is the case for all investment types on Abundance except variable return investments. Interest is taxed in line with income tax, according to your income tax band and should be declared on your tax return.

For some of the investments on Abundance, the company or council issuing the investment is required to deduct a proportion of your interest payments, equivalent to the basic rate of income tax (currently 20%), and pay this to HMRC directly. Please see our Help Centre article on Withholding Tax for more information.

This is only applicable to a few company investments on Abundance, which have a variable return linked to the performance of the company. In these cases your income will be taxed in the same way as a dividend on a share. This is because the size of your investment income is linked to how the underlying project performs. The dividend tax rate will depend on whether you are a non-taxpayer, basic rate, higher rate or additional rate taxpayer. You may have a dividend tax-free allowance also.

Depending on your income tax band, you may be able to earn some interest tax free. You can find out more here.

Since the 2016/2017 tax year, you have a tax-free dividend allowance, although the amount has been decreasing. You can find out more here.

If you're completing your tax return, you can find a breakdown of what you have earned on Abundance in a particular tax year.

To view the tax section, click Account in the top right, and then Statements on the pop up menu. Click on the tab for Tax to find a list of PDF statements you can download which summarise what you have earned on Abundance in a particular tax year.

Please note, only investment income you earned in a General portfolio (i.e. taxable) and not an ISA portfolio will show in your statement. If you did not earn any taxable investment income on Abundance in a particular tax year, you won't see the option to download a statement for that year.

The position of companies, partnerships, trusts or unincorporated associations is complex and investors in these categories should get appropriate tax advice on their position. As a general rule, UK companies will pay corporation tax on their investment income and on capital gains.