WAY Fund

Rosanne58

I have recently inherited a large number of shares/units in WAY GLOBUS PORTFOLIO FUND B CLASS INCOME which are now held in my name and I have the following questions:

1. How do I sell these?
2. How many am I able to sell before needing to pay Capital Gains Tax?
3. If I wish to sell more than the above amount how is the amount of CGT calculated?

I would welcome any advice, thanks

Malthusian

1) Assuming it's held directly with WAY, write to them instructing them to cash it in.

3) Take the current value minus the value of the units as at the date of death. You have an allowance of £11,300, and if the gain doesn't exceed this and you haven't raised any other gains in this tax year, the gain will be tax free. Otherwise you pay 10% tax on the excess over £11,300, or 20% if it falls above the higher rate threshold.

Hopefully, as the units were recently inherited, the value won't have changed much since the date of death and there's a good chance you won't have to pay CGT. If you do, consider selling some of the shares now and some in the next tax year when you'll have a fresh CGT allowance.

2) Depends on the answer to 3).

Rosanne58

Many thanks for your speedy and helpful response. I really appreciate the information
Although the units are in my name am I able to make use of my husbands allowance as neither of us have raised any gains in this tax year?
And finally, maybe a stupid question - but as you can tell I'm new to all of this, how do I ascertain their value?

Linton

Assets can be transferred between spouses without CGT being charged. So you transfer half to your husband and then sell. But as Malthusian suggests your units may well not have increased in value since you inherited them sufficiently for CGT to be a problem.

The fund seems to be an in-house one run by https://www.wayinvestments.co.uk/ so the value seems not to be publicly available. I suggest you talk to them.

Rosanne58

Thanks Linton for your helpful information.
The fund shows "WAY Fund Managers Ltd". I assume I will need to contact them to arrange transfer to my husband...and to obtain an indication of the value?

Linton

I have found a list of WAY funds but your's isnt there.

Looking at the WAY Fund Managers and the WAY Investments Services websites it seems they only work through intermediaries rather than directly with the public, so you need to find the appropriate one. Did the person you inherited from have an IFA or other financial advisor?

You could try the link I gave you.

Rosanne58

Huge thanks to you, Linton, I have just phoned the WAY Fund Managers and they have told me the value (I'm VERY pleased, but will certainly not be cashing them all in as yet!!!) They are going to send me the papers to transfer some to my husband and the relevant documents to progress cashing some in.


So a very productive morning!! Many thanks again

Linton

Have you checked that you actually need to transfer some to your husband? CGT would only be charged if the difference between the value when you inherited and the value now was greater than the CGT allowamce of £11300.

Rosanne58

Thanks again, Linton, but I'm not sure I understand.
Having only inherited these a few weeks ago, I don't believe the value has changed in more than a few ££££s. (I have many thousands of units)
My idea was to transfer some to my husband now, so we could each sell the value of £11,300 now and then each sell to the value of £11,300 after beginning of April. Thus avoiding paying any CGT.


Does that make sense?

xylophone

https://www.gov.uk/tax-property-money-shares-you-inherit/money-and-shares




https://www.saga.co.uk/magazine/money/personal-finance/inheritance/inheriting-shares

Your "base cost" is the probate value of the shares.

MallyGirl

CGT is not on the selling price of your shares - it is on the profit you have made on those shares.
In a normal share sale you deduct what you paid from the selling price and if that comes to more than £11300 gain then you have to pay tax on the excess.

An inheritance of shares is different. The 'profit' is the difference between the price at probate and the price when you sell. Is that difference going to be more than £11300? If not then no CGT to pay and no need to mess about with transfers