A capital gains liability may arise following the sale of investments in a client’s account. Capital gains are included in the Fund’s tax liability when it completes its annual tax return.
Timing of capital gains tax (CGT) deductions
The deduction of applicable capital gains tax for a client’s account doesn’t occur at the time of an asset’s sale. Instead, it generally occurs during the first quarter of each calendar year as part of the Fund’s annual tax adjustment process.
Where a client makes a full or partial withdrawal, a deduction for tax will generally occur, representing the proportional value of any CGT on investments that have been sold during the current and previous financial year or other earnings tax that hasn’t yet been deducted.
Previous years’ CGT will only be included if the previous year’s annual tax calculation has yet to be finalised.