GeoffF100 wrote:londoninvestor wrote:2) Use a fund with an "accumulation" share class so that the dividends are not paid out as cash, but rolled up into the value of the share. The dividends are still taxable as dividend income though, which as mentioned adds a bit of admin.
There is a nasty catch with that when the fund already has a large capital gain. When a dividend is paid and reinvested within an accumulating fund, the dividend is pooled with the rest of the fund for Capital Gains Tax (CGT) purposes. If you then sell units in the fund the recover the dividend, you not only pay tax on the dividend but also pay CGT tax on the capital gain.
I’m pretty confident your reference to taxation of capital gains tax within a fund does not apply to the uk, CGT applies to the investor , OEICs do not pay CGT on gains within the funds.
[url][https://techzone.abrdn.com/public/investment/Guide-Taxation-of-Collectives][/url]