CGT on Accumaltion Funds

[JonOlsen]

Each year i have the same headache working out the CGT as I transfer funds from my General Share Portfolio into my ISA. I know basically that i need to work out the gain in value by first working out what i have paid on average for a share/unit since i first started investing in the fund. This is now many trades over my 15 years of investing in accumulation funds.a nightmare!

HL don't directly provide a CGT certificate to cover my sales in the 23/24 tax year but when i list all the transactions since i invested it does list a :

Average weighted price paid:

Is this the same as a pooled price? Can i use this figure to work on my CGT on the price per share i got when selling?

[someone]

There are huge numbers of subtly different ETFs (which I assume is what you're talking about) and I'm not 100% sure that they're all identical but the general idea is:

1. You pay income tax on the dividend reinvestment. Most, but not all ETFs will have told you how much this was (IIRC it's called something like Excess Reportable Income but I might have got that wrong).
2. You pay CGT on the difference between the price paid and the price it's sold at. The price paid is an average value.

HL may include the dividend reinvestment in their "Average weighted price paid" (I have no idea, you'd have to ask them) but if they don't then you need to add on the amount of income that you have already paid tax on to the total price - multiply the average price by the number of shares held, add on the amount of income that income tax has been paid on, and then divide by the number of shares to calculate the pool price.

Many people avoid holding accumulation shares outside of an ISA wrapper precisely because calculating the income tax liability every year and the CGT liability when you sell is such a pain.