CGT Incidental costs

Posted by Paul D Utherone PM | on Thu, 17/11/2011 - 18:36 1159 2 comments | report

Possibly silly question, but here goes.

Client pays say £100k to an investment manager who deducts an initial charge of £2.5k and then purchases unit trusts/OEICs with the balance of £97.5k

I have calculated the CGT on subsequent disposals using the relevant costs of the units out of the £97.5k balance, but is a proportion of the initial charge allowable as an incidental cost under TCGA s38 or not.

Reading the section I think possibly not, but....?

Comments

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Why not?

BKD | Fri, 18/11/2011 - 08:23

It is called an Initial charge

Paul D Utherone | Fri, 18/11/2011 - 08:48