Postby Confused Virgin » Thu Jan 20, 2011 10:13 pm
Stumbled across this thread with the aid of Google. I realise it's almost 5 years old but I'm a Virgin Money customer and am a tad confused (hence the username, honest!) as far as the CGT on my Unit Trust investments with them are concerned and the initial question seemed at least semi-relevant.
In May 2009, I invested in all three of their Unit Trust funds, initially in UK Index Tracking Trust (henceforth UKINDEX), a couple of days later the Income Trust (INCOME) and then a week later the Climate Change Fund (CLIMATE). I made subsequent additions to each of them before at the end of September I switched the majority of the funds held in each of UKINDEX and CLIMATE to INCOME.
First question is whether these two switches each need to be considered as disposals for CGT purposes? I think the answer is yes, but hope I'm wrong. When I log into my online account the value of all three funds is initially amalgamated and seemingly treated as one single unit trust (although I can also of course view each fund's units and values separately), but HMRC's Helpsheet 284 briefly mentions umbrella schemes and I assume that's pretty much what this is and so they have to be treated as disposals for CGT purposes.
OK, this is where it starts to get a bit messy. 10 days later, I switched more units (of greater combined financial value than I had originally switched out / disposed of) back from INCOME to both UKINDEX AND CLIMATE. I made a further cash investment in both CLIMATE and UKINDEX the same day, before withdrawing the majority of my investment from all three funds a further 10 days later.
As I understand it, the 'same day' rule only apply to units purchased in the exact same fund (in my case UKINDEX or CLIMATE or INCOME) on the same day. Otherwise the first switches into INCOME detailed above would fall under this category and not be considered as disposals. However, as far as the 'bed and breakfasting' rule is concerned, where do I stand if the shares acquired in the 30 days following the original disposal exceed the amount (in unit and £ terms) than I originally switched out?
And as far as the final withdrawals were concerned, will their capital gain or loss only then be relevant to a rather complex and messy Section 104 holding as I didn't make any further investments that day or in the 30 days following?
So, your thoughts, please? I've tried to keep it as clear and concise as I possibly can. Needless to say, Self Assessment this year is proving rather more intricate than in previous years. Oh and thanks in advance. And congrtaulations for making it this far!