I have a Goodbody Vantage fund for the past few years. I initially invested 80K in it. Last November I withdrew 30K from it. How is this withdrawal treated for income tax purposes? I do my own tax online with the form 11 but I am unsure where on the form do I put any tax gained from this fund? Also I am not sure how to calculate any gains on the fund? Any advice would be appreciated.
Goodbody Vantage fund - tax treatment
- Thread starter suicra05
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It will depend on what type of fund the Goodbody Vantage fund is - according to the site https://www.goodbody.ie/goodbody-vantage they are UCITS funds and so Exit tax of 41% is due on all income and gains
The prospectus document on the site has details of the taxation applied to the fund
Did Goodbody deduct exit tax when you withdrew the 30k?
The prospectus document on the site has details of the taxation applied to the fund
Did Goodbody deduct exit tax when you withdrew the 30k?
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AAAContributor
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Goodbody Vantage
The Goodbody Vantage suite can offer a cost-efficient and simple way of accessing a fully diversified portfolio as well as benefiting from the Goodbody Investment team’s strategic asset allocation decisions.
www.goodbody.ie
The tax treatment of these funds is contained in the prospectus which is at the bottom of the page linked to above.
It looks like exit tax @ 41% is payable on fund gains.
Definitely check your documentation/correspondence that no tax has been deducted at source at the time of encashment or at any time prior.
You had a partial encashment for €30,000.
Check what the value of the fund was before this partial encashment - let's say €100,000 for the sake of example.
As far as my understanding/experience goes of partial encashments of funds, and I'm not a financial adviser or tax adviser, the gain on the partial encashment is:
€30,000 - €80,000 x [€30,000 / €100,000] = €30,000 - €24,000 = €6,000
Exit tax of 41% on €6,000 is due = €2,460
Part 27 - Sections 731-747F
www.revenue.ie
The footnote on page 9 of the Revenue Guidance on Investment Undertakings is:
"where....exit tax has not been applied to the payment, the payment is treated as if it is a payment from an offshore fund to which the provisions of Chapter 4 apply. Section 747D provides for payments in respect of offshore funds and Section 747E provides for disposals of an interest in offshore funds."
In that event, insert the gain in the "Gain taxable at 41% (S.747E(1)(b)(ii)" box in Form 11 in the 'Offshore Funds' section of the form.
I'm sure your account/relationship manager in Goodbody can hopefully give you a steer on the above. They should have private client tax experts available to you for the fees you are paying them on the fund.
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Thanks for the contribution to date. Goodbody seem to have a policy of not giving tax advice which is not very helpful.
There is no exit tax, the tax on a gain is the responsibility of the investor. After 8 years of investment if there are no withdrawals there
is some sort of tax paid from the fund. There should be a simple formula to calculate any tax to be paid on any encashment from the fund.
There is no exit tax, the tax on a gain is the responsibility of the investor. After 8 years of investment if there are no withdrawals there
is some sort of tax paid from the fund. There should be a simple formula to calculate any tax to be paid on any encashment from the fund.