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Capital Gains on Index Funds

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Comments

  • ColdIron
    ColdIron Posts: 10,021 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    Presumably I'd need to be recording this regularly given that I'm investing monthly as the unit prices will always be different.
    Yes, record every single one as you purchase them
    It'll most likely be an Acc so will also keep a cumulative note of the Dividends to deduct at time of sale. Will I need to bear in mind the annual total for the dividends as will this be subject to a tax on dividends?
    Yes. Acc or Inc the dividends are taxable. You will get an annual Consolidated Tax Certificate that you can use for dividend declarations
    Or is it exempt if I am choosing to reinvest them?
    If you use Acc units there will be nothing to reinvest
    Inc units are much easier if held unwrapped
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