2. iShares STOXX Europe 600 UCITS ETF (DE)
As far as I understand, losses on this fund cannot be offset against gains elsewhere in an investor's portfolio. However, what I am unclear on is intra-fund tax accounting. I have seen elsewhere on another thread, a poster imply that each and every investment in a single UCITS fund is treated as a discrete investment and units sold at a loss cannot be offset against units sold at a profit. This was contradicted by another poster (apologies I cannot locate the thread). I just want to be 100% clear on this point. Take this example:
Buy 1,000 units @ €36.00 =€36,000
Buy 1,000 units @ €37.00 =€37,000
Sell 2,000 units @ €36.75 =€73,500
Net Profit =€500
Tax on Gain =€205
If each purchase is treated as a discrete investment for tax accounting, that would mean the units purchased @ €36 would realise a gain of €750, attracting tax at 41% of €307.50. This works out at a tax rate of 61.50% relative to the net profit. I presume this is absurd but would like to be 100% clear just in case.