CGT calculations with Accumulation Units
Colinstewart76
Member
Hi all - head scratcher for me today.
We are working for a client which has invested in a GIA for a number of years. The investment strategy needs to be changed and we've got to do some CGT estimates.
The client made just one lump sum investment, BUT is invested in accumulation units and has taken regular monthly withdrawals.
Unhelpfully, the platform doesn't provide unrealised gain estimates. So, to work out the gain I need to:
- Take the current value of the remaining units
- Calculate the cost of the remaining units - obtained from a transaction history
- Deduct accumulated income - obtained from tax vouchers
Now, the first two are straight forward. The last part - accumulated income - is challenging me as the number of units held is ever decreasing. Should I simply work out what the accumulated income per unit remaining at each income distribution point and multiply that by the number of units left now? That seems to be a logical way but it's onerous. Does anyone have a method or could point me to a techie piece?
Thanks
Colin
Comments
So when you're looking at selling the whole portfolio - you're talking about unrealised gains, right. So it's not ever decreasing units, it's whatever's in the pot now.
For realised gains, the information should be available from the platform hopefully?
The trickest part of ACC units is having a record of what's income and what's capital - but if you have that it shouldn't be too bad I don't think?
Ah, well this platform is playing a bit funny (as it's only useable by advisers tied to a large building society).
We have no realised gain reports available at all - the functionality isn't there in the platform apparently. So we need to do that too.
And, having read the transaction history again, I've realised I misread it originally. There are monthly purchases of units and monthly sales to pay platform charges. So, we're into average price paid for units remaining to work out the cost.
I'm just glad there's only one fund.
As i'm sure you will too, I always include a warning about the calculations - in the same vein as investment performance is not guaranteed, neither are my CGT calculations!
Oh definitely!