Tax Liability on encashment/closing of Summit Funds

[Passport1]

HI...

I hope this is ok to post here = If not please delete and apologies

Anyone know anything about Summit Funds and tax liabilities on encashment/closing. Prospectus attached

I opened a Summit Fund account with EBS on the 31-003-2000 in Ireland. The sum invested was 4000.00 Irish Punts - Euro had not been introduced at this time.

The fund is split between 2 funds - Balanced Fund with 1,334 shares and the Grown Fund with 1.078 shares.

The current value of the fun as of 31-12-2025 is €10,972.58. I am an Irish citizen and resident in Ireland for Tax purposes

In May 2025 the fund account was taken over by Northern Trust.

Northern Trust are saying that " no tax on encashment for Summit Investment funds, "

I've asked them about the Tax on 8th Anniversary rule and they are saying that their "tax team have confirmed there are no anniversary events on the account "

In comms with them ive asked a number of times "Will ALL Tax liabilities be settled on account closing and net I receive will reflect settlement of ALL Tax Liabilities?" but cant get a clear answer from them re this

From the prospectus it seems to indicate that summit accounts are "Section 739B–739D of the Taxes Consolidation Act."

The Taxation section of the prospectus seems to imply their is a Tax liability at account encashment saying as i understand it

1. Irish‑resident investors in UCITS funds pay exit tax on gains at the rate of:

• 41% for individuals (standard UCITS exit tax rate)
  Exit tax applies on:
• Redemption (when you cash out)
• Switching between funds
• Deemed disposal every 8 years

Anyone any familiarity with these types of accounts and the tax liabilities on encashment/closure

Thanks

 

[ClubMan]

Any use?

I still have a gross roll-up Summit Fund (Summit Mutual Fund) and they told me recently that it's subject to 41% exit tax on encashment but not 8-yearly deemed disposal due to some "special admin arrangement" with Revenue since 2012.

The comment about the "special arrangement with Revenue" resulting in no deemed disposal was via a phone call if I recall correctly.
But as the letter says "exit tax is not deducted until you make an encashment".

 

[Passport1]

Thanks @ClubMan . Do you know will the the financial institution deduct the tax or will just give me the gross and i will have to settle the tax liability myself with revenue?

 

[Fortune]

Pre 2001 investment funds are taxed within the fund. There is no tax liability on encashment. They are not gross roll up. Exit tax does not apply; deemed disposal does not apply

 

[Up Rovers]

Hi Passport1,

We invested funds with EBS Summit Funds in 2001 and enquired from both EBS (before the handover) and with Northern Trust (after) and they both confirmed that we will not incur any tax liability in any way. Like you we invested in Balanced and Growth funds. We found this hard to accept but having spoken to both organisations have come around to their advice about the tax. This is their explanation to us

Your fund is a Summit Investment Fund (SIF) which means the tax treatment is as follows:

Summit Investment Fund (SIF) is invested in the Summit Net Fund. This means the tax is paid within the fund on an ongoing basis at the standard rate of tax. All the Funds’ investments pooled together are taxed and this tax is reflected in the daily bid price. Should you request to encash your investment, it will be valued net of tax.

It is not possible to break down the amount of tax paid by individual investment as the Summit Investment fund pays the tax at source at fund level to Revenue.

You won’t be subject to further tax in SIF funds as the tax is already accounted for in the daily unit price of the fund and is paid to Revenue on investor’s behalf at fund level.

We recommend that you read the Key Information documents and monthly market updates from the investment managers each month to keep informed about your investment and or consult with an independent financial advisor if you need further advice. Summit funds were sold as execution only products so we can’t give investment advice.

 

[Passport1]

Thanks @Fortune and @Up Rovers . Am i correct that if i were to encash the fund in the morning - the value i would receieve would be circa €10,972.58 (the value of the fund at 31-12.2025) or thereabout? Thanks

 

[Up Rovers]

Hi Passport1,

As far as I know because the value changes on a daily basis you would be paid the rate on the day that they process your encashment which can be a few days in/around when you apply. You can go to this web page to get your current value and input your information but make sure when you use the Fund Value section that you use the Investment Fund line rather than the Mutual because explained already these are the funds that you have https://www.ilim.com/funds/summit-fund-prices-calculator

The values are very good at the moment so you need to be aware of what's happening in the world on a daily basis (especially with Mr Trump's carry on) as like all investments they rise and sink from day to day

I'm sure Northern Trust can confirm your recent values also and answer any questions that you have about encashing.

They say on that page that I linked to

Important Note

Prices are updated at approximately 3.00pm daily. Prices quoted on a particular day are a reflection of the market activity on the previous business day. Applications to invest or encash receive the unit price of the next business day.

Whilst the prices quoted on the site are normally accurate they should not be relied upon with regard to the unit value for the purposes of investment or encashment.

 

[ClubMan]

Pre 2001 investment funds are taxed within the fund. There is no tax liability on encashment. They are not gross roll up. Exit tax does not apply; deemed disposal does not apply

The EBS Mutual Summit Fund that I mentioned above and in the linked thread was gross roll up and subject to exit tax which EBS dealt with. I thought that I started that investment before 2001 but maybe it was my SSIA which would be 2001?

 

[Persius]

I had one of those from an SSIA and cashed it out before the transfer to Northern Trust. From what I remember, EBS deducted the tax on encashment. So if you paid EUR 5,000 and it's now worth EUR 10,000, you will get about EUR 8,100 (I'm assuming the exit tax is now 38% on the 5,000 profit).

Edit: Double checked my statement and above is correct. I had contributed about €12k and the fund value on encashment was about €30k. I got about €23k after EBS deducted the exit tax

 

[ClubMan]

The EBS Mutual Summit Fund that I mentioned above and in the linked thread was gross roll up and subject to exit tax which EBS dealt with. I thought that I started that investment before 2001 but maybe it was my SSIA which would be 2001?

I checked my records and the Mutual Summit Fund that I mentioned above, and which was gross roll up and only subject to tax on encashment and not also 8 yearly deemed disposal, was opened in November 2001 as an SSIA.