Managing CGT on fund gains

talexuser

For the past few years I have sold gains up the CTG limit and either bought an equivalent fund to keep or then bought back into the original fund while rebalancing after the 30 day rule. This is a personal choice to avoid the gains becoming unmanageable without paying large tax amounts in future years, so take the small sell/buy costs and stamp duty hit now. It depends how much you think you will need to crystalise in future years since a gain of 12k is still a large sell, but e.g. a good care home could cost a lot and inflation does work against you over the years, whatever the "official" figure is.

Tom99

Ceme3000 wrote: »

Thanks for this. I need to get my head around it and set up a spreadsheet. It's on my to do list, so this is really helpful. I bought inc units after reading on the forums here that it was easier to calculate the gains.

Acc units are no harder to calculate the gain for than Inc units, as you can see from my post above.
If you don't need the income then Inc units are more of a faff because you have to reinvest the dividend and probably keep track of a lot of small purchases.
With Acc units you probably have to wait for your tax certificate after the year end to find out the actual split of the 1st dividend between equalisation and income but that might also be true of Inc units as well.

Malthusian

Ceme3000 wrote: »

As for spending more money, you are I'm sure correct! I guess the problem is, I have always been careful, and what you might call a tight git! It's two fold. The fear of running out, illogical probably but the thought is still there. There is also the psychological barrier in spending more when I've conditioned myself not to over the years. That's something I do need to work on. I do have ideas to travel in a few years time when I've actually convinced myself that I won't run out of money to live on.

If you haven't convinced yourself now what will have changed in a few years' time? The numbers certainly don't need to change.