Tax on accumulation bonds

peter021072

I purchased this accumulation bond at the end of last year, and the value has increased by 3.01% between then up to 5th April this year.

SHORT DURATION Global HIGH Yield Bond M GBP ACC ROYAL LONDON ASSET MANAGEMENT BD FD

https://secure.ii.co.uk/webbroker2/research/funds/BD0NHK8/overview.sp

This site suggests that income from this type of accumulation fund is treated thus

Income rolled up into your accumulation units is known as a “notional distribution” and is taxable in exactly the same way as the distributions from income units

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https://www.youinvest.co.uk/articles/sharesmagazine/89901/income-versus-accumulation-units

Am I correct in assuming all the gain between the two dates should be treated as income and treated as such for tax purposes?

Linton

Unless the bond fund is held in an ISA or SIPP just the dividend is regarded as income, not the whole of the gain between the two dates. I thought your platform should send you a tax statement detailing what the dividends were.