dc991

Thank you for your response. In order to be sure that I understand it properly, could I give a simple example? 1. I buy shares in an Accumulation fund for £1000 2. The value of the shares goes up to £1200 3. My shares then have a notional interest distribution of £100 which I declare as additional income for Income Tax purposes. If I sold the shares at this point, my capital gain for CGT calculations would be:- £1200 - £1000 (acquisition cost) - £100 (notional distribution) = £100 Is that correct? 4 . Instead of selling the shares, I transfer them to my wife (no gain/no loss to me). 5. She decides to sell them immediately and receives £1200. What is my wife's capital gain on this transaction for CGT calculation purposes? Thanks.

I have an investment in an Accumulation (Acc) fund and annually declare any notional distributions of dividends and interest as additional income. I understand that the sums of these notional distributions can later be subtracted from my Capital Gains calculations if I later sell the investments (as they have already been subject to Income Tax):- See https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/hs284-shares-and-capital-gains-tax-2022#accumulation-units "If you receive notional distributions which are subject to Income Tax, you’re allowed the amount of these distributions as additional expenditure on your accumulation units." My question is:- If I transfer all of my Acc shares to a spouse, when they sell them can they subtract the value of the notional distributions of income and dividends made during my ownership as allowable expenditure when calculating their Capital Gains liability? Or perhaps do my notional distributions (as allowable expenditure to me for CGT) become part of the acquisition costs when I transfer the shares (also thereby reducing my spouse's CGT liability)?