Thanks @GSheehy - so, if I'm cashing in a unit linked fund to invest the proceeds in shares subject to CGT then I presume that the timing is irrelevant?
To the best of my knowledge, the only time that it makes sense to cancel one unit-linked investment to avail of a lower priced product is when it's between year 5 and year 8 and it's at breakeven.
Interesting. Not sure about the year 5 to year 8 bit. But in essence this rule of thumb is driven by the fact that Exit Losses are worthless. Thus if you are in a loss position, you are crystalising a worthless loss. But if you are in a gain position and cash and reinvest, then any subsequent losses will be worthless whereas they would have sheltered the gain you triggered.
You can transfer/switch from one intermediary to another without cashing in an investment but if you want to change the structure of the pricing then it's a 'new' investment and you trigger a deemed disposal.
Reducing the AMC from 100bps to 65bps is hardly changing the structure. But I accept your knowledge that this is how companies would process it. There is no Revenue reason why it cannot be accommodated within the same policy.
At the point when your investment is break-even. It may make sense to try and trigger the DD event, to reset the clock, so your funds have full 8 years to grow again before the next event.
At the point when your investment is break-even. It may make sense to try and trigger the DD event, to reset the clock, so your funds have full 8 years to grow again before the next event.
Yeah if you have costs you certainly would have to consider any transaction costs and compare them to your predicted gain from the extra tax-free-rollup-time.
At the point when your investment is break-even. It may make sense to try and trigger the DD event, to reset the clock, so your funds have full 8 years to grow again before the next event.