Share classes

The Phoenix UK Fund has two classes of shares: A Class and B Class.

The A Class is a Non-Distributing class. The B Class is a Distributing Share Class having been granted reporting fund status by HM Revenue and Customs in 2010.

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 Class shares would be treated as income and gains on the B Class would be treated as a capital.

When a dividend is paid to B Class share holders, 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.

HMRC granted reporting fund status for Phoenix UK Fund Limited - B Class shares in respect of the year ended 31 December 2010 and, unlike the old distributing status, once reporting status has been granted to a fund then it is not necessary for the fund to reapply each year to retain the status. The fund will remain a reporting fund as long as it continues to comply with the reporting rules and obligations.

Please seek formal advice from your own tax adviser when you consider your own circumstances.