Unit Trust Closure?

Frank99

One of my Unit Trusts held outside of an ISA is closing down, I have an option to receive the £5600 in my Bank or do a fund switch and deposit it into my larger Unit Trust with the same company.
I am struggling to make a choice! I am concerned with a fund switch being a taxable event but i don't know if the fund it is going into would also pay tax or if i would pay more than receiving it in my account, Does anybody know what the best choice is likely to be. 

EthicsGradient

You say you are "concerned with a fund switch being a taxable event". The company ought to advise you on whether it is or not. Receiving the cash would definitely be subject to capital gains; this year, you have £6,000 allowance in gains before you pay CGT.
" i don't know if the fund it is going into would also pay tax" - in what sense?
"if i would pay more than receiving it in my account" - I can't see a situation where you would. Again, it's the responsibility of the unit trust company to make this clear. Ask them to be explicit about the tax situation.

redux

The difference between the sale cost and original acquisition cost is a capital gain.

There is an annual allowance for capital gains tax, now £6000, decreasing next year to £3000, so if you have no other gains this will not be taxable. If you do have other gains, or are considering other sales, bear this in mind.