Switching accumulation to income - capital gains Q

marlot

I've retired, and want to change the way that dividends are treated on my general investment account.

At the moment, I'm invested in accumulation funds.  Income funds would suit my needs better.

I'm being told that if I sell the accumulation units and immediately buy the equivalent income units, no capital gain liability occurs.
eg. L&G International Index Fund (acc) to  L&G International Index Fund (inc).

Is that right?

[Deleted User]

Switching between different share classes within the same fund is not treated as a disposal for CGT.

EdSwippet

[Deleted User] said:

Switching between different share classes within the same fund is not treated as a disposal for CGT.

There is however a lengthy thread from a couple of years back that concludes that explicit sale to cash and later purchase by the holder does not count as a "switch" in the same way as the fund provider (or maybe also the platform) switching the investments without intermediate cash redemption.

[Deleted User]

EdSwippet said:

[Deleted User] said:

Switching between different share classes within the same fund is not treated as a disposal for CGT.

There is however a lengthy thread from a couple of years back that concludes that explicit sale to cash and later purchase by the holder does not count as a "switch" in the same way as the fund provider (or maybe also the platform) switching the investments without intermediate cash redemption.

Yes - the op would need to be very exact on the ‘sale and immediately buy’ point.