Can anyone help with the following problem? With the changes to the charging structures of unit trusts and OIECs I am confused as to how the capital gains for CGT purposes are calculated.
If 'dirty' funds are converted to 'clean' funds (e.g Invesco Perpetual European Equity Fund to Invesco Perpetual European Equity Z Fund), what is the situation regarding capital gains tax? I understand that no CGT liability is triggered by the conversion itself, but the two versions have different prices and, whereas I can calculate the Section 104 weighted average price for the 'dirty' fund, how can I do this after conversion? Are the two versions of the fund considered to be two entirely different holdings?
And what happens if I have holdings in both the 'clean' and 'dirty' funds and then the dirty funds are converted to clean funds are the new 'clean' funds added to the existing 'clean' funds and treated as one holding?
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