S104 Holding - What date should be placed against notional dividend?

[DavidTax]

Good Afternoon,

Should the ex-dividend date or distribution date be used for notional dividends in a Sec104 holding?

Quilter and Fidelity say use the ex-div date. The law says use the distribution date.

David


Refs:

Quilter does:
https://www.quilter.com/4a16e8/siteassets/documents/platform/guides-and-brochures/20719-cgt-quick-reference-guide-2-section-104-holdings.pdf

Accumulation units
These distributions are added to the cost of the existing units. However, the number of units held stays the same
Using the same table format as above, add each income accumulation as an additional transaction Keep the number of
units the same, but increase the total cost by the value of the income payment. The date of the transaction is the
ex-dividend date.

Fidelity does:
https://eumultisitev4prod-live-eb461540d2184169bb77db2b062d9318-f268f99.s3-eu-west-1.amazonaws.com/fnw/guides/cgt-reports-user-guide.pdf

4. Transaction Date: this is the price date associated with the transaction. For a distribution this is the ex-dividend date.


https://www.legislation.gov.uk/ukpga/1992/12/section/99B
Taxation of Chargeable Gains Act 1992
UK Public General Acts
1992 c. 12
Part III
Chapter III
Section 99B

Calculation of the disposal cost of accumulation units

(1)For the purposes of computing the gain accruing on a disposal by a unit holder of units in a unit trust scheme and for the purposes of all other provisions of this Act, an amount shall be treated as expenditure falling within section 38(1)(b) if—
(a)it represents income from the investments subject to the unit trust scheme,
(b)it has been reinvested in respect of the units on behalf of the unit holder (without an issue of new units), and
(c)it is either—
(i)charged to income tax as income of the unit holder (or would be charged to income tax as his income but for a relief which has effect in respect of it) for the purposes of the Income Tax Acts, or
(ii)taken into account as a receipt in calculating profits, gains or losses of the unit holder for the purposes of the Income Tax Acts.

(2)Where an amount is treated as expenditure by virtue of subsection (1), the expenditure shall be treated for the purposes of this Act as having been incurred—
(a)in relation to an authorised unit trust, on the distribution date for the distribution period in respect of which the amount is reinvested, and
(b)in relation to any other unit trust scheme, on the date on which the amount is reinvested.
(3)In subsection (2)(a) “distribution date” and “distribution period” shall have the meaning given by [F2regulations made under section 17(3) of the Finance (No. 2) Act 2005 (as at 1st April 2006, see regulation 15 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964))].

https://www.legislation.gov.uk/uksi/2006/964/body
The Authorised Investment Funds (Tax) Regulations 2006
UK Statutory Instruments
2006 No. 964
Whole Instrument without Schedules

Regulation 15(4)In these Regulations the “distribution date” for a distribution period of an authorised investment fund means
—(a) the date specified by or in accordance with the terms of the trust or the instrument of incorporation of the company for any distribution for that distribution period, or
(b) if no date is specified, the last day of that distribution period.