Are profits taxed as dividends or other income?

The tax treatment of your UOWN returns depends on how they're classified:

Capital gains: Most UOWN returns from property development exits are likely to be treated as capital gains rather than dividends, since you're selling shares in an SPV.

Dividends: If the SPV pays out interim distributions (rare in development projects), these might be treated as dividends with different tax rates.

Dividend tax rates: 0% on first £500 (2024/25), then 8.75% basic rate, 33.75% higher rate, 39.35% additional rate.

Income tax: In some cases, HMRC might treat returns as trading income, especially if you invest very frequently.

Documentation: UOWN will provide information about the nature of distributions, but final tax treatment is determined by HMRC based on your circumstances.