CGT for multiple OEIC funds held within a WRAP product

For a number of years I have invested in 10 different OEIC funds held in a WRAP product by Provider A. Following financial advice these were all transferred to Provider B's WRAP product in October 2023 (sale and repurchase). This activity has triggered need to provide the required information on my self assessment for 2023-2024, as for the first time the total sale of chargeable assets exceeds £50,000 and/or potential gains are more than the annual exempt amount. I have created a spreadsheet to calculate the CGT liability for each OEIC fund, but seek clarity on how to deal with dividends in accumulation funds. I understand the reinvested income (which was subject to income tax) inflates the unit price and the notional income can be used to increase the original cost of the investment. All my funds sell units monthly to pay charges and occasionally sell units for fund switching (portfolio rebalancing), both of which may result in a CGT liability. Do I only offset the dividend against the potential CGG liability in that specific tax year, or do they also carry forward to the date the fund was fully surrendered? Having multiple funds with both Provider A & B, do I need to provide a separate spreadsheet for each fund, or will a single spreadsheet with each fund appearing on a separate tab be acceptable? Finally, having undertaken the calculation exercises I have determined an overall loss for tax year 2022-2023, which should largely/totally offset any gains in 2023-2024. Can the relevant calculations be included on the same spreadsheet for both tax years?

Hi,

We can only give general advice on a forum as we don’t have access to all the specific information, and of course the normal rules regarding Self-Assessment apply.

Firstly, where you talk about OEIC’s being held within a WRAP, we assume you mean like an Umbrella Scheme, as described at CG41580 and CG57760. CG57750 onwards covers OEIC’s in general and CG57751 states that shares in OEIC’s are for the most part treated like shares in Authorised Unit Trusts. Dividends received from Unit Trust Accumulation funds are covered in CG57707 and as it states here, the amount that would normally be distributed as a dividend is instead re-invested into the fund to which it relates.

For Income tax purposes, this amount should still be returned as dividend income in the normal way. For CG purposes it has the effect of increasing the value of units in that holding accordingly. The amount that is subject to IT on the holder as dividend Income, is allowable expenditure for CG purposes (so effectively increases the base cost of the units in the holding).

Where some units are sold, then that would constitute a disposal of shares from that holding. Assuming all units in the holding are of the same type and class this will work like a S104 Pool, with any Gain is calculated in the normal way. There is a Help sheet HS284 that covers shares and includes information about S104 pooling that you may find useful. It also contains brief guidance on Accumulation trusts and Umbrella schemes.

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Finally, if you have calculated a Capital Loss for 2022 to 2023 this will need to be reported in the normal way, so if you have completed an SA return for 2022 to 2023, you should amend this to include a CG page with the relevant disposal details. Any gain calculated for 2023 to 2024 will also need to be reported on CG pages of your return.
You should include an attachment of the spreadsheet with the return to show your workings of the loss and gain. Whether you include separate spreadsheets for 2022 to 2023 and 2023 to 2024 or use the same one for both years is up to you, so long as the information relating to each year is clearly identified. 

Thank you.