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Where Taxpayers and Advisers Meet

Is conversion of holding of one share class to another class with same Fund manager a taxable event for CGT purposes ?

pdfx4
Posts: 11
Joined: Wed Jun 28, 2017 1:46 pm

Is conversion of holding of one share class to another class with same Fund manager a taxable event for CGT purposes ?

Postby pdfx4 » Tue Oct 08, 2019 5:33 pm

I wish to transfer a Non ISA fund holding with Hargreaves Lansdown to another platform where there are lower charges. However the new provider is not able to hold the particular share class of the Fund. I imagine that this is because H/Lansdown give a special discount on the Fund charges in the particular class of fund which is "special" to them and not therefore available to other Providers.

Can anyone tell me if the transfer from one class of fund to another class of the same fund - but with the same Fund Manager - is a chargeable event for CGT ? Unfortunately there is quite a considerable historic embedded CGT liability and I do not want to trigger a CGT liability by transferring to an acceptable class of the fund before transferring out to the new provider.

If in fact the opinion is that this will not trigger a CGT liability could you please let me know the authority for this ?

Many thanks for any help.

pdfx4
Posts: 11
Joined: Wed Jun 28, 2017 1:46 pm

Re: Is conversion of holding of one share class to another class with same Fund manager a taxable event for CGT purposes

Postby pdfx4 » Wed Oct 09, 2019 9:11 am

I have found this in "legislation.gov.uk". Here is the link : -
https://www.legislation.gov.uk/uksi/2013/1400/made?view=plain
This is "The Collective Investment Schemes (Tax Transparent Funds, Exchanges, Mergers and Schemes of Reconstruction) Regulations 2013"
It is incredibly complicated but it does seem to indicate that one can convert from one class in the fund to another class within the same fund without a CGT implications.
Any views anyone please ?
Alternatively any ideas where I could get a definitive answer please ?


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