Capital gain calculation for accumulation funds

Hi, I’m new to Performance Portfolio and really impressed. I see it can perform capital gain calculations, which is great, but unsure how to approach this for accumulation funds.

Such investments may pay a dividend, a ‘notional distribution’, that’s automatically reinvested in the fund and is taxable as dividend income. And there could be an ‘equalisation payment’ if the fund has been acquired between dividend payment dates. I hold a number of funds which have received both a notional distribution and an equalisation payment and understand if these were sold the correct approach to calculate capital gains would be: -

Net proceeds minus both the acquisition cost AND the notional distribution, plus the equalisation payment.

So, how’s this achieved in Performance Portfolio?

Wellcome @Rich28,

How the tax is to be settled correctly depends exclusively on your tax domicile. As a rule, you can map the tax in PP as it is actually incurred.

However, you should always use a tax tool optimised for your country in addition to PP.

Cheers, Laura

Thanks for getting back to me @Laura - I completely get that. Put the matter of tax domicile et al to one side though.

Accumulation funds are widely available, they may pay a ‘notional distribution’ and there could be an equalisation payment. These are aspects relating to how accumulation funds are structured to operate, which ideally PP would take into account for a capital gain calculation for this type of investment.


PP takes these aspects into account. You can book any type of distribution - including a notional distribution. You can also post any type of payment - including equalisation payments.

It does not matter that PP does not work exactly with these terms. It is important to consider which booking type in PP correctly reflects your business transaction in relation to the performance of your portfolio.

If you are unsure, please post a specific case so that we can discuss it.

Cheers, Laura