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Managing tax on Wrap

Risk warning

The value of investments can go down as well as up, and the investor could get back less than was paid in. Laws and tax rules may change in the future. Personal circumstances and where the investor lives in the UK will also have an impact on tax treatment.

Capital Gains Tax

The figures shown in the Performance screens are not Capital Gains Tax compliant. Please use the Capital Gains Scenario Tool for ‘what-if’ calculations and our Capital Gains Report for post disposal calculations.

Capital Gains tool

The +Book Cost flag in the Capital Gains Scenario Tool is shown when we don’t have a book cost for some of the units – clicking the button will show you which units we have no cost for.

Capital Gains report

This report is generated for illustrative purposes only and should not be relied upon as a complete or accurate reflection of capital gains.

It's not, and should not be treated as tax advice. If you're in any doubt about your tax position, you should seek independent tax advice from an accountant or adviser. We accept no responsibility or liability for any decision you make or course of action you may take on the basis of this report.

Note: if you’re an adviser and are advising your client on the basis of information contained in this report, you must make sure that they understand the important information and disclaimers contained in this section of the report.

You are also responsible for ensuring that the book costs and realised gains or losses recorded on the Wrap Platform are and continue to be accurate. We are not liable for any losses caused if this is not the case.

The book cost for an investment on the Capital Gains Report will be shown as zero if 1) the units were transferred to the account and no book cost has been entered; or 2) the average unit cost is less than £0.005. If the units were transferred, an asterisk will be shown next to the fund.

You don't need to wait for us to send your clients a Consolidated Tax Certificate each year - unwrapped income information can be found at any time in the Performance page by selecting ‘Income’ from the Data View drop down box and then you can move between the different Data Table drop down options that display interest, dividends etc.

Tax reclaims

For ISA, we will reclaim any tax that has been deducted on “Interest distributions”. Funds that derive 60% or more of their income from interest-bearing securities (such as property funds) are treated as paying interest distributions which are generally taxed at 20% before being paid. We can reclaim that 20% deduction for SIPP, ISA and International Portfolio Bond clients and we do so – regardless of whether the units held are Inc or Acc units. The tax reclaim will be applied as cash.

We apply tax reclaims for ISA distributions every 4 - 8 weeks; for SIPP and ISA we apply tax reclaims annually.