Funds

Usually each fund relates to a different beneficiary. Investment schedules are often sorted by fund. For CGT purposes it is usually desirable to aggregate all the holdings as if they were in a single fund. This can be done by choosing one fund and getting the others to "consolidate" to it.

Sometimes each beneficiary’s income, gains and so on are shown separately in the accounts. In this case separate nominal accounts are set up for each fund. Investment defaults on the fund allow the fund’s default accounts to be specified. However if each beneficiary receives their own complete set of accounts showing income, assets, liabilities and a schedule of his investments, it may be easier to set up each beneficiary as a separate client than to use funds. This approach works for CGT purposes so long as each beneficiary holds a fixed percentage of a total holding with purchases and sales being divided between the beneficiaries. However there is no option to consolidate funds across clients.

Some users use a fund on individuals to record the client’s ISA or PEP holdings. In this case the fund is exempt from CGT. A tick box is available on the fund to mark it as exempt.