Reportable income question from GIA newbie
Posted: March 5th, 2024, 8:16 am
I started putting significant funds into a GIA (at Lloyds Investment) around October last year.
At the time I didn't really understand much about the tax (div tax and CGT) implications of ACC funds outside a tax shelter. One of the funds I bought was GB00BMJJJF91, FTSE All-World Index Fund Acc C.
Yesterday I ordered a sale of the whole of my holding in GB00BMJJJF91 ... this has gone up by approx £6100. So I'm assuming this will mop up my CGT allowance 2023-24.
I had noted that the number of units had not changed ... so had assumed that this meant that there had been no dividends paid. Now I have read something from which it seems that it ain't quite that simple: it now appears that the issue of a dividend can cause the value to increase in the case of an Acc fund... Oh dear oh dear oh dear.
I found a useful explanation here https://www.reddit.com/r/UKPersonalFinance/comments/156oiou/calculating_dividends_for_accumulating_etfs/ about the way to proceed in these circumstances.
So I went to the page for the fund at HSBC https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/funds/gb00bmjjjf91?t=5. There is a drop-down box to find the right class of fund there: "Acc C", which gives the right fund (identified by the ISIN).
I had a look at the "Semi annual report", issued on 15/11/2023, but I couldn't find any information in there about dividends. Choosing another class, e.g. "Inc C", in the dropdown box, produces a page where there is indeed a "Dividends" tab, and where it is possible to see that the last dividend issued was in May 2023, well before I started buying this fund.
I have now become a big-time fan of Inc funds for my GIA accounts (and have seen this useful Fool thread https://www.lemonfool.co.uk/viewtopic.php?f=8&t=41761). But can anyone tell me what I'm meant to do to understand the div situation with the fund I've just sold, GB00BMJJJF91? It seems very likely that for all classes of this holding a dividend was probably last issued in May 23 ... but I just want to know for certain how you're meant to do this the right way (and get definitive information) with an Acc fund like this.
Lloyds Investment, like most platforms I think, issues a statement annually (in April?) showing your dividends tax liability situation for the past year, and I have duly used these over the past years to declare my dividends liability on my tax forms when I've had GIA accounts previously. Calculating the capital gains when you sell an Acc fund seems significantly trickier.
At the time I didn't really understand much about the tax (div tax and CGT) implications of ACC funds outside a tax shelter. One of the funds I bought was GB00BMJJJF91, FTSE All-World Index Fund Acc C.
Yesterday I ordered a sale of the whole of my holding in GB00BMJJJF91 ... this has gone up by approx £6100. So I'm assuming this will mop up my CGT allowance 2023-24.
I had noted that the number of units had not changed ... so had assumed that this meant that there had been no dividends paid. Now I have read something from which it seems that it ain't quite that simple: it now appears that the issue of a dividend can cause the value to increase in the case of an Acc fund... Oh dear oh dear oh dear.
I found a useful explanation here https://www.reddit.com/r/UKPersonalFinance/comments/156oiou/calculating_dividends_for_accumulating_etfs/ about the way to proceed in these circumstances.
So I went to the page for the fund at HSBC https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/funds/gb00bmjjjf91?t=5. There is a drop-down box to find the right class of fund there: "Acc C", which gives the right fund (identified by the ISIN).
I had a look at the "Semi annual report", issued on 15/11/2023, but I couldn't find any information in there about dividends. Choosing another class, e.g. "Inc C", in the dropdown box, produces a page where there is indeed a "Dividends" tab, and where it is possible to see that the last dividend issued was in May 2023, well before I started buying this fund.
I have now become a big-time fan of Inc funds for my GIA accounts (and have seen this useful Fool thread https://www.lemonfool.co.uk/viewtopic.php?f=8&t=41761). But can anyone tell me what I'm meant to do to understand the div situation with the fund I've just sold, GB00BMJJJF91? It seems very likely that for all classes of this holding a dividend was probably last issued in May 23 ... but I just want to know for certain how you're meant to do this the right way (and get definitive information) with an Acc fund like this.
Lloyds Investment, like most platforms I think, issues a statement annually (in April?) showing your dividends tax liability situation for the past year, and I have duly used these over the past years to declare my dividends liability on my tax forms when I've had GIA accounts previously. Calculating the capital gains when you sell an Acc fund seems significantly trickier.