Accumulation fund holding sold in full in 2016-17. Capital gain calculation took account of dividend vouchers up to date of sale. Holding was sold XD and dividend voucher was received in the next tax year. I'd assumed (following advice from the fund) that with no remaining holding the final dividend would be paid over in cash.
However the Dividend was never paid to client - explanation we've now been given is that the capital value on the date of sale already reflected all the income accumulated and so he had already received it as part of the capital disposal. What I can't get my head around is if the income accumulated is automatically reflected in the capital value as it is earned ( there being no need for any of it to be set aside as it will never actually be paid out and so the price does not fall on the xd date as it would for an income fund ) how can the "payment date" of the dividend be several weeks later?
Key issue is whether this new explanation is reasonable (in which case I'll adjust the provisional return to record the dividend in 2017-18 and also apply for the capital gain in 2016-17 to be reduced) or is client still due payment of the dividend?