Charges on entry to fund and exit deductible?

[Matthew P]

I recently sold holdings in a fund whose terms say: "we will add a 1.8% charge to the subscription price, and deduct the same percentage from the redemption price." There is also a 1% annual management fee, and a high water mark fee.

Are these two sets of 1.8% fees deductible for CGT?
How would I calculate the deduction? Would I subtract from the gross gain (1.8% x share price on purchase + 1.8% x share price on sale)?

[pawncob]

The net receipts are used for CGT purposes.

[bd6759]

Cost of purchasing and selling are allowed.

Annual management fees are not.