Inherited investment fund help.

EthicsGradient

Since it's an Acc fund, the true capital gain won't be the full difference between the 2004 acquisition price and the 1214p it's at now - the Inc version is at about 2.5 times the 2004 price (which makes me wonder if it really is the Acc version they hold - worth checking again, @Percey , or if you could have misrembered the valuation when you inherited it), which indicates a significant part of the growth has been reinvested dividends, which would have been subject to income tax, but are allowable against the cost when working out CGT.

However, working out the lower actual capital gain after the "reinvestment" equivalent for the accumulation units will be hard, if you don't already have the documentation for it (for something that has to be dealt by phone, I'd expect them to send by post a yearly valuation with the accumulated value, which people with enough dividends would have needed to work out their yearly income tax). If that isn't available, and CT don't have it sitting on a website (Fidelity lists it going back to 2016, but that's not definitive - Fidelity sometimes makes mistakes copying things to their website:

CT FTSE All-Share Tracker Fund 2 Acc Dividends | GB0033138131 | Fidelity

It's easier to not work that out, and just sell £3k per tax year, and then you know there's no CGT to pay. But that will obviously take a few years.

jimjames

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

But if you split it over 2 years then no CGT to pay

DRS1

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

Did you have to work out a value for the fund for IHT purposes on his death? If so you would use that figure as your base cost.

Percey

I could be well wrong with the valuation when I transferred the fund over to my name? Will HMRC have this information? If not who will? Colombia Threadneedle? Is it worth asking them?

I think this fund was originally with F&C at transfer, but since then has changed fund manager a few times. This is where I've lost track a tad.

All old correspondence have now been discarded I only kept/keep 2 to 3 years to date.

Definitely CT FTSE All-Share-Tracker 2 Acc GB0033138131. As per yearly statement.

Since Feb 2024 to Feb 2026 its grown from 8k to 12k Roughly.

I have tax vouchers stating roughly £290 tax payable per year. Has this already been paid on my behalf? Do I need to pay this? Is this CGT or income tax? No one has ever chased me for tax arrears, yet.

Yes i was also thinking of selling just enough units per year to stay under the CGT threshold.

eskbanker

Tax vouchers presumably relate to the dividends, although wouldn't expect these to generate an income tax liability of that size - they won't relate to CGT though, as this only comes into play when you sell.

DRS1

I think HMRC would expect you to keep records for longer than 2-3 years.

When you say "I have tax vouchers stating roughly £290 tax payable per year. Has this already been paid on my behalf? Do I need to pay this? Is this CGT or income tax? No one has ever chased me for tax arrears, yet." do you mean you have had dividend vouchers?

Dividend vouchers usually tell you what the dividend was (not the tax). Very old ones used to say what the gross dividend was, the tax deducted and then the net dividend but that is ancient history now. Dividends are subject to income tax at the dividend rate. You would have a dividend allowance of £500 so if the total dividends in a tax year are under £500 then you have no tax to pay on that. It is of course possible that you get more than one voucher per tax year - it should be sent each time a dividend is paid - so check that the £290 really is an annual figure.

And if you do a tax return you should have included the information on that return even if the total dividends in the tax year fall below £500.

And as someone has pointed out the dividends are deducted when you work out your CGT where the units are Acc units. That gets complicated (especially if you have lost track of all the dividends) so you may be better off just selling £3k worth in each tax year

Percey

Yes they may well be dividend vouchers, it does mention dividend on them. I could post up pics of voucher if it helps.

Who will have info on when I received and at what price these shares/ units?. Say I sell the lot now, how are HMRC to know when and at what price i obtained these shares / Funds?

Also can someone explain how this acc fund works? Do I obtain more units with growth, how do the dividends work?

If units are the same as when I obtained this fund in 2004 , I suppose I could roughly work out CGT from what the fund was trading at in 2004, and where is the info on what price it was trading at in 2004.

If I have no way to accurately working.out CGT , I think my best option will be to sell 3k per year as mentioned above.

Thanks

Percey

Also if I can't move this fund into a isa s&s wrapper with out selling them 1st, Am I able to move to a different fund manager or trading platform like Trading 212 without selling 1st non isa?

phlebas192

Your original acquisition cost would have been the value of the holding when the person you inherited from died. So if you can find the unit value on that date then you have a minimum cost which you can use for CGT purposes. As EthicsGradient pointed out, your total cost should include all of the reinvested dividends but since these will only decrease the CGT due, HMRC aren't going to be bothered if you don't include them. A starting point is certainly better than having to assume zero cost!

FWIW, if you give me the date in 2004 I can tell you what the unit price was according to the data in Sharescope - this is likely accurate but I can't guarantee it.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81968872#Comment_81968872

Yes, you can transfer shares and funds in-specie but the broker you're transferring to also needs to offer the same shares or fund. T212 doesn't offer OEICs so you'd need to find another broker.