Inherited investment fund help.

Percey

HI

In 2004 I inherited a investment fund namely a FTSE All-Share Tracker 2 Acc managed now by Columbia Threadneedle i believe. Since inheriting this fund I have done nothing with it, just let it sit, I've noticed that it has grown a bit in 2026 and wondering what I should do with it.

1. Do I sell up/ cash in and close the fund?

2. Transfer the whole amount to an isa stocks and shares fund manager? Can this be done? I notice that Halifax have the same fund.

3. What are the tax implications and fees involved in the above?

4. Is it better to hold this fund in a isa?

CT do not have an online portal to buy / sell / manage etc, must all be done by phone i believe, not sure what there fees are etc.

I presume/believe the Halfax isa s&s manager has a online portal for selling/ buying/ managing etc.

Will the isa wrapper protect me from capital gains tax, in the event I want to sell,? Will I have to pay any CGT on the transfer to the Halifax isa s&s fund manager.

I'm a newbie at all this and trying to learn what I can.

Thanks.

eskbanker

If the holding isn't currently within a tax wrapper such as an ISA then you'd need to sell in order to repurchase again within the wrapper, a process which would crystallise any CGT liability, that would be based on growth since you inherited it. You have an annual CGT allowance of £3K to offset against any liability but you haven't given any indication of the size of the holding or the scale of the growth since you've held it (which will be substantial over that timeframe).

Percey

From what I remember when I inherited the fund it was around 6-7k roughly, how would I find out what I inherited it at? Is this possible after all this time?, its now grown to just over 12k, not a substantial gain over that amount of time, that's why I'm thinking maybe just selling up and put the cash in a cash isa, if its not possible to transfer the fund into a s&s isa without selling 1st anyway.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81967047#Comment_81967047

In terms of inheritance valuation, this should have been established at the time of probate or estate distribution, but the FTSE All-Share index itself spent 2004 in 2200-2400 territory and is now at circa 5700, so even without dividends that's more like 150% growth.

As above, selling would be needed in order to get it into a tax wrapper, but the choice of what to do with the proceeds, e.g. saving versus investing, or even spending, should depend on what your financial plans and objectives are…

Percey

Hmmmm so what is the likely CGT roughly i would have to pay do you think on the figures given, I should have my full £3k CGT allowance available.

I'm just thinking its a good time to get rid...???

dunstonh

I'm just thinking its a good time to get rid...???

Why?

doing so would trigger a CGT bill if you did it all in one go.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81967121#Comment_81967121

https://www.gov.uk/capital-gains-tax/rates explains how to calculate it.

Percey

The inherentance was just a straight transfer into my name from my farther, as I remember, I did the probate myself, then with all the relevant paper work phoned the fund manager at the time, and did the transfer into my name. And that's how it's sat up to now. How would I work out the CGT that might be owed?

6k then.

12k now

Profit of 6k minus 3k tax allowance

3k at 18%

£540 CGT to pay.

Is this the right calculation?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81967152#Comment_81967152

Yes, that's right if the gain is £6K and you have at least that amount of headroom in your basic rate band.

phlebas192

https://forums.moneysavingexpert.com/discussion/comment/81967047#Comment_81967047

It seems surprising that a FTSE tracker fund that was worth £6k in 2004 would only be worth about £12k now. There are many funds around with very similar names but the CT FTSE All-Share Tracker 2 Acc (ISIN: GB0033138131) was trading between 227p and 264p in 2004. It is now at 1214p. If it were worth £6k in 2004 then it should be worth at least £27.6k now. That would create a sizable CGT bill if sold all at once!

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81967193#Comment_81967193

Yes, as above I also expect growth to be more significant than OP suggests, but imagine that their reference to a current value of £12K is likely to be more reliable than their memory of the value 22 years ago!