Changes ahoy at the HSBC Global Investment Centre

newfoundglory

I have just opened an ISA via Cavendish and started a monthly savings plan which includes the HSBC FTSE 100 (TER 0.27%)

Is this fund likely to be withdrawn in the near future given that its no longer available for new money on the GIC platform?

SnowMan

It appears that an incorrect 'annual consolidated tax certificate' has on 22nd May appeared in the 'my investment documents' part of GIC when I log in.

It seems to exclude income from accumulation units held outside of an ISA.

While income for accumulation units is reflected through an increase in the unit price of the fund of course, that income is dividend income that needs to be included on tax returns for a non-ISA holding and subject to additional tax for higher rate taxpayers for example.

Has anyone else got their GIC 'consolidated tax certificate' and is theirs wrong also?

I'll ring them on Tuesday and report back in any case.

(edit: rang the GIC today, Tuesday, and they can't explain it at the moment. They are going to look into it further and ring me back).

SnowMan

SnowMan wrote: »

It appears that an incorrect 'annual consolidated tax certificate' has on 22nd May appeared in the 'my investment documents' part of GIC when I log in.

It seems to exclude income from accumulation units held outside of an ISA.

While income for accumulation units is reflected through an increase in the unit price of the fund of course, that income is dividend income that needs to be included on tax returns for a non-ISA holding and subject to additional tax for higher rate taxpayers for example.

Has anyone else got their GIC 'consolidated tax certificate' and is theirs wrong also?

I'll ring them on Tuesday and report back in any case.

(edit: rang the GIC today, Tuesday, and they can't explain it at the moment. They are going to look into it further and ring me back).

Still no reply from the HSBC GIC to correct the incorrect consolidated tax certificate

I also asked (unsuccessfully so far) for a link to the latest (May 2012) long report for the HSBC tracker funds OEIC because I couldn't find it anywhere. Comically it says on the IMA website that HSBC have confirmed they are following the 'enhanced fund charges and costs disclosure' guidance. What nonsense when you cannot even access the 'portfolio transaction costs' breakdown from the long report

SnowMan

SnowMan wrote: »

Still no reply from the HSBC GIC to correct the incorrect consolidated tax certificate

I also asked (unsuccessfully so far) for a link to the latest (May 2012) long report for the HSBC tracker funds OEIC because I couldn't find it anywhere. Comically it says on the IMA website that HSBC have confirmed they are following the 'enhanced fund charges and costs disclosure' guidance. What nonsense when you cannot even access the 'portfolio transaction costs' breakdown from the long report

I rang HSBC GIC again last week and they claim to have already sent out the corrected consolidated tax certificate. I explained that the previous person I had spoken to had taken my email address so they could email it on, but I hadn't received anything by email or post. They said they would post on another.

Rang them this morning as nothing yet received. They claim to have sent out the corrected consolidated tax certificate. I asked if they could tell me the figures over the phone. They told me they hadn't kept a copy of what they had 'sent' :rotfl:

They are going to call me back. But no call back yet.

Has anybody else got (UK equity) accumulation units outside of an ISA on the HSBC GIC and has the notional distribution (assuming funds were held on the qualifying date) been shown on the consolidated tax certificate?

SnowMan

Just rang up HSBC again and they have spoken to their 'back office' and they say there is no requirement for the HSBC GIC to provide details of notional distributions for accumulation units, and we seem to have reached an impasse where they aren't going to supply the figures.

The GIC don't seem to understand the concept clearly stated on the SA150 notes for example that

If you have accumulation units or shares the dividend is
automatically reinvested but you must still include the dividend in box 4

Given that additional tax is payable by higher rate taxpayers on these notional distributions, then HSBC GIC's position is just nonsense, as it means that investors can't fill in their tax return or R40 and higher rate taxpayers won't pay the right tax unless they try to do the sums themselves.

The trade body for the funds industry, the IMA say in their income tax guide that notional distributions from accumulation units should be shown on tax vouchers

Income units allow you to take a regular income from the fund.
Accumulation units mean the income earned is automatically reinvested into the fund.
Income from both (whether received or reinvested) will be shown on your tax voucher and should be declared on your tax return.

Clearly HSBC GIC are unaware this is what should happen.

I have contacted the confidential HMRC tax evasion helpline and reported HSBC GIC to them for failing to show notional dividends for accumulation units (where applicable) on their consolidated tax certificates given that seems to be generally what is going on; they said they would investigate.

premierfella

Some of the HSBC funds only distribute once a year.

I don't suppose there is any chance that the OEIC fund was
purchased/tranferred into GIC after mid May 2012?

premierfella

Additional... the Short report says that the Long reports are obtainable from the administrator (HSBC). Thats not a standard request though so I wouldn't be at all surprised if they charged for it if they were unable to email a soft copy.

SnowMan

premierfella wrote: »

Some of the HSBC funds only distribute once a year.

I don't suppose there is any chance that the OEIC fund was
purchased/tranferred into GIC after mid May 2012?

I've been holding the HSBC 250 index retail accumulation fund outside an ISA from December 2011 to February 2013.

The xdividend date is 16th May 2012 (payment date 15th July 2012) so the fund was held on the xdividend date and the notional payment is in the 2012/2013 tax year.

Additional... the Short report says that the Long reports are obtainable from the administrator (HSBC). Thats not a standard request though so I wouldn't be at all surprised if they charged for it if they were unable to email a soft copy.

They haven't indicated that they will make any charge for the long report although I am still awaiting for it to arrive. It sounds like it will be a paper copy although I had said that an electronic copy would be completely OK.

premierfella

That's the most obvious reason for nothing showing on the CTC ruled out then.
Unfortunately I only have an ISA in GIC which I'll probably move elsewhere now Vanguard have expanded their ETF range. I would have expected to see something on the CTC, like you have, for an OEIC outside an ISA it puzzles me as well.
(although I won't pretend that I know for sure if it is supposed to be on there)

SnowMan

premierfella wrote: »

That's the most obvious reason for nothing showing on the CTC ruled out then.
Unfortunately I only have an ISA in GIC which I'll probably move elsewhere now Vanguard have expanded their ETF range. I would have expected to see something on the CTC, like you have, for an OEIC outside an ISA it puzzles me as well.
(although I won't pretend that I know for sure if it is supposed to be on there)

Thanks for the attempt at explaining it.

HSBC are now calling me back later today so we will see what they have to say then.

In contrast to HSBC's sorry performance I was actually holding the same HSBC 250 index retail accumulation fund outside of an ISA with Hargreaves Lansdown in 2011 and qualified for the 2011/2012 notional distribution. I rang up HL BEFORE the end of the 2011/2012 tax year to ask for details of the notional distribution and they posted it out and it arrived the next day I think it was.