Yes, you receive the whole divy, but the tax deferred portion is not taxable, but rather reduces the cost base of your investment. It is a distribution of capital, normally distributed via a unit trust.....
Further to reece55's comments, if the tax deferred amount is higher than your cost base, then the excess will be treated as a deemed capital gain. This may happen if you hold a trust for a very long time during which it has been paying many tax deferred distributions.
Correct me if I am wrong here guys, but I believe a simple explaination would be, that you don't pay tax on your dividends until you sell off your shares and make a capital gain.
This could be handy later on, say in retirement when your income (possibly)would be in a lower tax bracket. Sort of sounds like an accounting headache - but if accounted for correctly would work well for long term investments.
Old thread, but thought I would revive it for the following question:
How do people keep track of the tax deferred component against their cost base for CGT? Is it just keeping a spreadsheet record or is there some nifty way I haven't thought of? Particularly if you are holding the shares for a while.
Also, if you buy several tranches of shares in a trust over time, does each tranche need to be monitored separately?I imagine dividend reinvestment on top of this would be a nightmare.