SWITCH FROM ACC TO INCOME UNITS

[littledavesab]

Hi All

Question if I may, asking for a friend. Supposing I owned Invesco - Global Equity (UK) Fund Global Equity (UK) (No Trail) Accumulation Shares,
Fund type - ICVC, Unit type Accumulation ISIN - GB00B3RS9Q62 /Sedol B3RS9Q6.

Ignore for a minute why anyone would still be owning this fund !

The holder wants to change from Accumulation Shares to Income shares in exactly the same fund - am I right in thinking this would NOT result in a disposal for CGT purposes. I have seen conflicting info all over the place but it does seem to have been answered here:
https://community.hmrc.gov.uk/customerf ... 20is%20due.

So 1. is it safe to rely on this and 2. Supposing one does swap from Acc to Inc units does one need to do anything special on the tax return ?

All answers gratefully received, thanks in advance.

[Gerry557]

I assume this is not held in an isa wrapper.

There would be the usual dividend tax to pay. Although this should be recorded on accumulation and probably easier to do with income fund.

To be honest I'm not sure about the CGT side of things and the 30 day rule.

[MuddyBoots]

I assume this is not held in an isa wrapper.

There would be the usual dividend tax to pay. Although this should be recorded on accumulation and probably easier to do with income fund.

To be honest I'm not sure about the CGT side of things and the 30 day rule.

So, despite the name of "income fund", do they attract dividend tax rather than income tax? I was wondering about this for the future, if I can't get it wrapped up in my ISA in time.

[Gerry557]

I'm not a tax expert and HMRC is probably the most accurate place to look.

I also find this site helpful


https://monevator.com/how-uk-dividends-are-taxed/

[doug2500]

Acc funds in taxed accounts can be problematic so personally I would go for a clean break because if you can swap without taking CGT then you also have to carry over the old records, divi's etc.