Each year, like many, I receive a consolidated tax voucher from my investment platform provider listing dividend payments and equalisation payments received in respect of my taxable investment funds for the tax year. All my funds are accumulation funds so no cash is actually paid in respect of the dividends so I will refer to them as 'notional' dividends for clarity.
Regards CGT; I DEDUCT equalisation payments from the section 104 cost pool and ADD the notional dividend to the cost pool to recognise it has been reinvested in the accumulation fund. I have always made both these types of adjustments to the pool using the date of the notional dividend payment - but I'm now not sure that is correct. For example, I might receive the notional dividend after I have sold off ALL my units, in which case there is not even any longer a 104 pool cost to deduct from(!) which cannot be right. The date of application of the adjustments does matter. So;
1) At what date should I adjust the CGT 104 pool for equalisation? The date at which the dividend was declared?
2) At what date should I adjust the CGT 104 pool for the automatic reinvestment of the dividend in the accumulation fund? Also the date at which the dividend was declared?
For income tax purposes I understand the notional dividend is included in the tax year in which it was notionally paid.
Would very much appreciate comments on the correct treatment of the above two items.