No book costs for GIA

richallum

We're looking at a portoflio that's been through several providers none of whom have book costs for the funds, not has the client. Anyone know what HMRC position will be or suggestions of what to do?

Nath

Hi Rich

There is a thread on Lifetalk forum on FB about this at the moment. Most are saying HMRC have stated you have to assume nil cost in this position which I agree is the safest thing to do.

Nath

These are the screenshots and discussions. More than one said you have to assume nil cost and this was confirmed by HMRC but another saying something slightly different.

benjaminfabi

I've had plenty of these cases where we've worked backwards to arrive at a value.

Helpful things:

• The fund hasn't changed name since it was bought
• The fund has always been transferred in specie
• The fund hasn't been used as a sell down option to pay platform charges
• The fund share class hasn't changed/merged or had a unit split since purchased
• The client still has a bank account statement with the original purchase amount
• Availability of the unit price on the date that it was bought

Unhelpful things

• people who don't keep records of their investments
• absence of any/all of the above

It isn't the custodian's responsibility to track the book cost. If the custodian switch has been a formally advised personal recommendation by a regulated adviser, then you might get a result if you ask them for the advice file related to the transaction, either through subject access or just with an enquiry. Part of their advice process should have included getting the transaction history (although sometimes fund managers don't have this data)

Otherwise, if you are at a dead end, then you'll have to assume nil cost. This is obviously wrong, but what else can you do?

Clare_Weight

I'm sure Richard you will already be aware of the Price on Date table in FE but thought I'd mention for other readers as it is useful in this situation if you have a date / bank statements and want to go the Michael Roberts (from screenshots above) route. At my current firm I had to get FE to switch it on for me, which they did at no additional cost but perhaps not a default inclusion so worth asking if you can't see it.

richallum

Thanks everyone. @Clare_Weight that's a great part of FE - we don't have the dates though :-(