CGT event?

TBC15

I see that Interactive Investor now offer the I class units of WS Blue Whale Growth  Acc.

My wife and I both have investments in WS Blue Whale Growth R Acc across our trading accounts.

Would changing from R class to I class by selling the R and buying the I in our trading accounts trigger a CGT event?

Notepad_Phil

If it did trigger such an event then it would cause problems when a platform/manager switched to 'clean' funds, so my understanding is that it wouldn't trigger an event.

Unfortunately the HMRC aren't clear on this and talk about vague 'can happens' but links such as https://techzone.abrdn.com/public/investment/Guide-Taxation-of-Collectives do say "Switching between share-classes within the same fund is not a disposal for CGT"

dunstonh

If it did trigger such an event then it would cause problems when a platform/manager switched to 'clean' funds, so my understanding is that it wouldn't trigger an event.

Platforms used conversions rather than switch.  Conversions are not considered to be a switch.

From memory, there are different places in HMRC manuals that give conflicting information. I haven't followed recent changes that may have occurred, but the immediate post-RDR guidelines stated that conversions were not a disposal, but switches could be depending on how the platform processed them.   i.e. was it a switch or did it get processed as separate transactions for each stage i.e. sale, settlement and then a buy.

TBC15

The I units have a higher value than the R units. So I would expect to receive fewer units at the end of the day.

Beddie

TBC15 said:

I see that Interactive Investor now offer the I class units of WS Blue Whale Growth  Acc.

My wife and I both have investments in WS Blue Whale Growth R Acc across our trading accounts.

Would changing from R class to I class by selling the R and buying the I in our trading accounts trigger a CGT event?

Don't sell and buy - ask Interactive Investor to do a conversion to the new class. Then it's definitely not a CGT event.

eskbanker

Beddie said:

TBC15 said:

I see that Interactive Investor now offer the I class units of WS Blue Whale Growth  Acc.

My wife and I both have investments in WS Blue Whale Growth R Acc across our trading accounts.

Would changing from R class to I class by selling the R and buying the I in our trading accounts trigger a CGT event?

Don't sell and buy - ask Interactive Investor to do a conversion to the new class. Then it's definitely not a CGT event.

We don't know if OP wants it not to be a CGT event!

TBC15

eskbanker said:

Beddie said:

TBC15 said:

I see that Interactive Investor now offer the I class units of WS Blue Whale Growth  Acc.

My wife and I both have investments in WS Blue Whale Growth R Acc across our trading accounts.

Would changing from R class to I class by selling the R and buying the I in our trading accounts trigger a CGT event?

Don't sell and buy - ask Interactive Investor to do a conversion to the new class. Then it's definitely not a CGT event.

We don't know if OP wants it not to be a CGT event!

Looking to avoid a CGT event.