Selling Funds

atlanticspan

Hi All,
I'd be grateful for advice on selling several M&G Funds
namely:
M&G American Fund
M&G Global Dividend Fund
M&G Recovery Fund

These make up a small portion of my portfolio and I require the money i.e. £7000 for unplanned household expenditure.
As I am a relatively new investor and have not sold funds before,I presume I have contact M&G for a valuation and they will take care of the rest.
With regard to CGT,will they deduct this prior to paying me,or is it for me to pay HMRC ??
Many thanks

[Deleted User]

Hi,

just contact whoever your funds are held with.

CGT is only payable on gains over £10600.

jimjames

atlanticspan wrote: »

Hi All,
I'd be grateful for advice on selling several M&G Funds
namely:
M&G American Fund
M&G Global Dividend Fund
M&G Recovery Fund

These make up a small portion of my portfolio and I require the money i.e. £7000 for unplanned household expenditure.
As I am a relatively new investor and have not sold funds before,I presume I have contact M&G for a valuation and they will take care of the rest.
With regard to CGT,will they deduct this prior to paying me,or is it for me to pay HMRC ??
Many thanks

You contact the broker or fund supermarket holding the funds which may not be M&G.

CGT is your responsibility to pay by declaring to HMRC but as you are only realising £7000 that is well within the annual limits unless you have other gains this year.

atlanticspan

jimjames wrote: »

You contact the broker or fund supermarket holding the funds which may not be M&G.

CGT is your responsibility to pay by declaring to HMRC but as you are only realising £7000 that is well within the annual limits unless you have other gains this year.

Thank you for your reply,when you refer to 'gains' do you mean my investment portfolio as a whole or only products that I have sold? If the latter I haven't sold anything yet.

[Deleted User]

Hi,

a gain is made when you sell, and the difference between buying price and selling price.

Here's a bit of reading for you.

atlanticspan

[Deleted User] wrote:

Hi,

a gain is made when you sell, and the difference between buying price and selling price.

Here's a bit of reading for you.

Much obliged to you:)

Linton

It sounds like you may not have had a sufficiently large emergency fund when you bought your investments. It is strongly recommended that you save enough money as easy to access cash before you start investing, otherwise there is a danger that unexpected expenses force you to sell investments at the wrong time. A reasonable emergency fund would be 6 months living expenses.

Wilkins

If you hold the funds direct with M&G, phone them up and they will do the rest. They will also deduct a fee, perhaps £50 (at least they did when I sold mine a few years ago), in addition to the annual fees of the funds.

jimjames

Wilkins wrote: »

If you hold the funds direct with M&G, phone them up and they will do the rest. They will also deduct a fee, perhaps £50 (at least they did when I sold mine a few years ago), in addition to the annual fees of the funds.

If this is the case then the OP would be well advised to check the best way to hold their investments.

Do you have a S&S ISA for example? If not it would make sense to put your investments inside that so they are protected from CGT.

Also if you are investing directly with fund managers it will often be cheaper to buy via a broker like HL.

http://www.hl.co.uk/

atlanticspan

Linton wrote: »

It sounds like you may not have had a sufficiently large emergency fund when you bought your investments. It is strongly recommended that you save enough money as easy to access cash before you start investing, otherwise there is a danger that unexpected expenses force you to sell investments at the wrong time. A reasonable emergency fund would be 6 months living expenses.

Hi Linton,
I thought I had,but due to my 3 year old car constantly breaking down to the point were I had to get rid of it for a pittance and then dip into my reserves to buy a new (hopefully more reliable) car,plus several major household appliances i.e. gas boiler and cooker,I've been left a little short of the folding stuff!

atlanticspan

jimjames wrote: »

If this is the case then the OP would be well advised to check the best way to hold their investments.

Do you have a S&S ISA for example? If not it would make sense to put your investments inside that so they are protected from CGT.

Also if you are investing directly with fund managers it will often be cheaper to buy via a broker like HL.

http://www.hl.co.uk/

Hi jimjames, I have several S&S ISA's. These particular M&G products were purchased direct from M&G by my former IFA. As they make up some of the smaller holdings in my portfolio, I'm comfortable with cashing them.

The majority of my portfolio is with Alliance Trust Savings.