If a Unit Trust/OEIC/GIA is encashed to meet expenses in a particular year, how is the gain taxed?
We calculate what the capital gain is as a percentage of the whole investment at the time of withdrawal and use this percentage to calculate the capital gain on the amount of the investment that is being withdrawn.We assume a full Capital gains tax allowance is available each year, increasing at CPI, and that the gains are taxed at the highest rate of 20%, or 28% if property.