OEIC and Capital Gains Tax caclulation

JB1979

Hi,

About 15 years ago I opened a Natwest Coutts Managed Fund OEIC with a deposit and then paid into it reguarly for a number of years and then stopped. I now need access to the money and want to sell the shares and close the account. What I cant wrap my head round is how I calculate the CGT for HMRC. I rang Natwest but they just told me they can't give financial advice. I am a higher rate tax payer and self assess so will need to declare - I have annual reports that show the share price but how do I tally that over the years and work out the gain - or even what information would an accountant need to calculate? Thanks in advance.

dunstonh

Did they give you acc units or inc units?

You need the unit price and the number of units for every purchase made.       Whilst they cannot give you advice, they should be able to give you that information.    However, from memory, I believe they changed systems several years back and may not have old information that they have already given to you in statement form.   Did you keep your statements.?

If you have no statements, ask them for a transaction history since inception.

JB1979

Thank you, I appear to have the majority of the statements. So for example May 21 I paid in £150 the share price was 117.1p and that bought 128.096 shares. Maybe I'm looking at this too simply but could I not just total the amount I have invested over the years in pounbds, then when I sell the shares just minus that from the sale price - is that not the gain? Thanks again

GeoffTF

JB1979 said:

Thank you, I appear to have the majority of the statements. So for example May 21 I paid in £150 the share price was 117.1p and that bought 128.096 shares. Maybe I'm looking at this too simply but could I not just total the amount I have invested over the years in pounbds, then when I sell the shares just minus that from the sale price - is that not the gain?

No. It is not as simple as that:

https://techzone.abrdn.com/public/investment/Guide-Taxation-of-Collectives

Further complications are possible, but I expect that link tells you what you need to know.

JB1979

Thank you @GeoffTF from talking to Natwest it looks like I just made an initial deposit over 10 years ago, so from the link you provided it looks as if I was to make a partial disposal using this calculation I could ensure I was below the CGT threshold:

Capital withdrawn = [ A / (A + ] x amount originally invested;

where:

A = disposal amount
B = value of part retained

Or if I wanted to be really careful I could just dispose of 3k every year for a number of years.

GeoffTF

JB1979 said:

Thank you @GeoffTF from talking to Natwest it looks like I just made an initial deposit over 10 years ago, so from the link you provided it looks as if I was to make a partial disposal using this calculation I could ensure I was below the CGT threshold:

Capital withdrawn = [ A / (A + ] x amount originally invested;

where:

A = disposal amount
B = value of part retained

Or if I wanted to be really careful I could just dispose of 3k every year for a number of years.

Almost certainly not. You have not given us the facts. Is the fund UK domiciled? Is the fund income or accumulating? If it was an income fund, what was the equalisation? If it is an accumulating fund, what were the dividend payments?