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Dividend Accumulating Funds
prudryden
Posts: 2,075 Forumite
I put this initially on the tax forum - but doesn't seem like much activity there so re- placing here.
Dividend Accumulating Funds
What is the tax treatment of Dividend Accumulating Funds e.g. Goldman Sachs Sterling Reserve Fund? These funds credit interest as dividends on a daily basis to the price of the fund. E.G. You buy on day one at a price of £1000/unit - you subsequently sell at a price of £1050/unit on day xxxx. The £50 difference in price/unit is the accumulating dividend/interest credited on a daily basis. Is this treated as income or as capital gain?
Many thanks for any help
Dividend Accumulating FundsWhat is the tax treatment of Dividend Accumulating Funds e.g. Goldman Sachs Sterling Reserve Fund? These funds credit interest as dividends on a daily basis to the price of the fund. E.G. You buy on day one at a price of £1000/unit - you subsequently sell at a price of £1050/unit on day xxxx. The £50 difference in price/unit is the accumulating dividend/interest credited on a daily basis. Is this treated as income or as capital gain?
Many thanks for any help
FREEDOM IS NOT FREE
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Comments
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As far as I'm aware, the dividend is treated as income as long as you still hold the fund.
Once sold it may also be subject to capital gains tax.0
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