The Phoenix UK Fund has the following classes of shares currently open to investors: A, B, F and G Class.
The A and F Class is a non-distributing class. The B and G Class is a distributing class.
Please do not take the following as tax advice as we are not able to give it, but we can say in general that it is our belief that for UK domiciled investors, gains on the A and F Class shares would be treated as income and gains on the B and G Class would be treated as a capital gain.
When a dividend is paid to B and G Class shareholders, it would normally be treated as income. A dividend is paid from the reported income received from the fund’s holdings minus allowable expenses. In some cases, allowable expenses exceed dividend income and no dividend is declared. In either circumstance, this is then reported to HMRC within 6 months of the end of the Fund’s reporting period to comply with the reporting rules and obligations.
Please seek formal advice from your own tax adviser when you consider your own circumstances.