Depends how you do it and tax treatment an dif your working or not in the UK you can use ISA's to avoid all tax on dividends. Also in the UK you have a separa

Depends how you do it and tax treatment an dif your working or not in the UK you can use ISA's to avoid all tax on dividends. Also in the UK you have a separate tax allowance for dividend income. What I also do is stop reinvesting dividends when funds are at a premium to NAV. I have also stopped reinvesting dividends as I think the market will fall this year - I can then buy after the market has fallen. You could also be cute and reinvest your dividend income into a pension and get tax relief back.