Equalisation Payment received after disposal of Fund Units

[SuperCally]

Can anyone advise what effect, if any, the receipt of an Equalisation Payment at a later date to the disposal of units has upon the CGT calculation pertaining to the earlier disposal?
What if ALL units were sold?
What if the EP is received in the Tax Year following the disposal?
And finally (I think!) what if further units are subsequently bought/sold?

Thanks in advance. Vinny

[helfordpirate]

You simply subtract the equalisation payment from the Section 104 pooled cost (which you have been maintaining, right?). This reduces the acquisition cost of the fund units. The tax year is irrelevant as it is an adjustment to cost and there is no chargeable event until you sell something.

If you buy and then sell all the units then the EP is obviously all used to reduce the cost of the units.

If you have a a bunch of units, add some, sell a different amount then any EP reduces your overall Section 104 pooled cost and thus blended unit cost for the units you sell.

(This all assumes you are not selling on the same day as buying - or buying within a month of selling- where Section 104 does not apply.)

[SuperCally]

Thanks for the clear explanation, helfordpirate. I submitted my SA Return a bit early, only to find a few EPs were made over the following months. It seems an odd thing to do, applying a payment to an event that occurred months previously, but it looks like that’s exactly what has to be done. I’ll consider whether it’s worth amending the Return. Thanks again

And, yes - got all the S104 details - even some EPs - in a spreadsheet