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Dividend yearly statement (Section 104 CGT calculations) - Equalisation?

Hi,

I am trying to pull together details for my Section 104 to allow me to see how much income from dividends I can off set against my capital gains when selling funds from my GIA accounts.
With CGT allowance being so low now at £3,000, this now seems to really matter as I start to move my assets from GIA to ISA.
So I am gathering up all my dividend details going back to 2021/22 for each asset (mainly funds).
When looking at divident statements, for some, I see an Equalisation column.  Can anyone shed light on what this means and how it impacts the dividends/income that can be set against CGT when selling.  
Can I assume that I just use the "Amount Payable" when calculating Section 104 and CGT liability?  And effectively ignore the Equalisation values?

Below is an example -



Comments

  • ColdIron
    ColdIron Posts: 10,359
    Part of the Furniture 10,000 Posts Hung up my suit! Name Dropper
    Forumite
    edited 1 January at 8:30PM
    With Inc funds the first dividend payment after a purchase will be a real dividend plus an equalisation payment also paid into your cash account, technically a return of capital so you are not taxed on it. This would reduce your cost of acquisition and increase your capital gain
    With Acc funds such as yours this 'equalisation payment' is simply retained within the fund so has no effect. You can ignore it and just account for the dividends as regards CGT
  • tigerspill
    tigerspill Posts: 1,015
    Part of the Furniture 500 Posts Name Dropper
    Forumite
    ColdIron said:
    With Inc funds the first dividend payment after a purchase will be a real dividend plus an equalisation payment also paid into your cash account, technically a return of capital so you are not taxed on it. This would reduce your cost of acquisition and increase your capital gain
    With Acc funds such as yours this 'equalisation payment' is simply retained within the fund so has no effect. You can ignore it and just account for the dividends as regards CGT
    Thank you.  
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