Provider won't issue a CGT certificate

[Mr Pointy]

I had a GIA with LG & transferred to another institution in April 2020 so I knew I'd crystallised the capital gain in the 2020/21 tax year. I asked them for a CGT certificate & they replied that they don't issue them, which has puzzled me somewhat. They did send me a list of the distributions applied but I had those already so all I can do is calculate the capital gain as the final value minus the start value minus the distributions.

Given that HMRC could ask for evidence of the CG calculation am I wrong in thinking that LG should provide a proper certificate? Parmenion managed it, as did HL (I think) & IM can do it on a running basis. Is it not a legal requirement for LG to be able to do so?

[Eric Mc]

Mr Pointy said:

I had a GIA with LG & transferred to another institution in April 2020 so I knew I'd crystallised the capital gain in the 2020/21 tax year. I asked them for a CGT certificate & they replied that they don't issue them, which has puzzled me somewhat. They did send me a list of the distributions applied but I had those already so all I can do is calculate the capital gain as the final value minus the start value minus the distributions.

Given that HMRC could ask for evidence of the CG calculation am I wrong in thinking that LG should provide a proper certificate? Parmenion managed it, as did HL (I think) & IM can do it on a running basis. Is it not a legal requirement for LG to be able to do so?

I think you should send your GIA and LG to HMRC to sort out the CGT ASAP.

PS - I don't know what on earth I am saying.

[anonymous-user]

Good to see Eric in such fine form today - having absolutely no connection with the fact it's a sunny Sunday and the pubs are open!

TBH I've never heard of a CGT certificate. Whenever a Contract Note arrives I dutifully write "retain" on the top and file it away.

For years I've been trying to wean myself off awkward CGT, principally by avoiding holding Inc units on a "dividends reinvested" basis in a general investment account. Nonetheless I still get hacked off that some Acc funds seem to create CGT issues by issuing additional units and some seem to make income taxable Distributions which never emerge as cash. It all seems bizarre to me.

Riiight, it's easy - just hold Inc units and don't reinvest the div's. But then you smack into some platforms and their "great Covid excuses",

• Due to Covid we're not offering unit class switches.
• Due to Covid we're not offering Bed & ISA.
• Due to Covid we're not offering..... etc

[xeny]

rockin said:

Nonetheless I still get hacked off that some Acc funds seem to create CGT issues by issuing additional units and some seem to make income taxable Distributions which never emerge as cash. It all seems bizarre to me.

I thought Acc funds all generated income taxable distributions which end up "embedded" in increasing the value of the units?

I've always held Income units in taxable accounts to make the maths easier, as at least then I can "see" the additional units being purchased.

[anonymous-user]

I just had a quick check and it looks as though you're right - the only two "Accs" that I hold outside a wrapper both generate taxable, non cash distributions.

So the bottom line seems to be that if you want to side-step CGT complications on a general investment account,

• Don't hold Acc units, and
• Don't hold Inc units with distributions set for automatic reinvestment.

Now then, don't get me started on "equalisation"....