Client holds units in a unit trust investment held within an Old Mutual Collective Investment Account. Each month, on the same day two disposals of units occur.
One of the disposals of units raises £600 each month to pay back to the investor and the other disposal raises around £30 each month for the monthly Collective Investment Account service charges.
The units were originally acquired as to 100,000 units costing £200,000 (£2 per unit). Only the £600 monthly disposal has CGT implications. But what is the order of CGT matching. Suppose on 5 October 2020 the following disposals occurred:
5.10.20 sold 200 units for £600 (£3 per unit) (the monthly return to the investor)
5.10.20 sold 10 units for £30 (£3 per unit) (to pay the monthly service charge)
Is the CGT sale of the 200 units matched as:
a) 200/100,000 x £200,000,
b) 200/99,990 x £200,000, or
c) does a different identification occur for the two sales on the same day each month, one sale being a CGT transaction and the other ignored for CGT purposes. If so, I cannot quite think how it should be identified, because both sales occur on the same day but only one is caught for CGT.