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CGT on vanguard funds: charges & calculations

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BemrBemr Forumite
11 posts
First Post
When calculating capital gain/loss on funds, what charges can be offset for tax?
Specifically, holdings on the vanguard investor platform (unwrapped general investment account).  Can I offset the 0.15% annual platform charge?

I've been investing in lifestrategy funds monthly over the past year or so, and paying fees by selling holdings quarterly.  So some of those fee sales were shortly followed by a monthly purchase.  I recently learned of the section 104 & 30-day rules.  Do those rules apply in this case?  As that means the fee sales somewhat complicate things.

I sold the lot at end of last tax year at a loss, to offset against future gains, and switched to an ETF.  I need to register the loss with HMRC.  I'm on PAYE and never done a self assessment.  Can I do that online or do I need to write to them?  When I checked a few weeks ago I'm sure I found a link to register it online, but now I can only find instructions to write.

Thanks

Replies

  • jimmojimmo Forumite
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    Allowable expenditure is very strictly defined and the annual platform charge cannot be specifically linked to any acquisitions or disposals. It cannot therefore be claimed.

    https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250

    It appears to me that your Vanguard funds are comparable to Unit Trusts. They are treated as shares and so the share identification rules apply.

    https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg57682


  • BemrBemr Forumite
    11 posts
    First Post
    Thank you, that confirms what I had suspected about the allowable expenditure.

    Yes the vanguard lifestrategy funds are an OEIC which (looking at the pages you linked to) are treated the same as a unit trust.

    Reading through those links it also seems there is something called "notional distribution" which applies to accumulation units, and which further complicates the capital gain calculations as some of the final sale price of my accumulation units would be treated as income not capital gain.  I need to look into this further so would appreciate any advice here.

    I already switched to paying the platform fees by direct debit to simplify future gain calculations (eliminate fee transactions falling into the 30-day rule).  Seems using income rather than accumulation units outside of an ISA/SIPP would also be sensible for simplification.
  • greatkingratgreatkingrat Forumite
    241 posts
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    The Vanguard website says they send out an annual tax statement with these details. Not sure exactly when it will come out, but probably easiest to hold tight for a bit and see what you get from Vanguard.
  • BemrBemr Forumite
    11 posts
    First Post
    Vanguard confirmed the same about the annual tax statement and I got it through in May.  In the end there was no 'nominal distribution' because vanguard pay dividends once a year and I'd just missed the ex-div dates on both purchase & sale.
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