Switching between share classes - tax implications

Chuckwalla

Hi,

I haven't been able to find much info on this.

If I hold shares in a foreign share-based fund and switch from one share class to another (no cash transfers necessary), what are the tax implications of that?

Is it treated as a sale and purchase with CGT and stamp duty applied or does tax not apply for some reason?

Any help would be appreciated.

nompere

It's impossible to say. The tax treatment of foreign funds is very complicated. In my experience the brokers who put their clients into these funds don't know the proper tax treatment - and most foreign-based funds don't know much about whether their funds are regulated in Ireland or not.

I haven't found that Revenue know much about it either.

I didn't think that there were many areas of income/capital gains tax that I couldn't advise on with a degree of comfort, but this is one.

Go to a specialist in a large firm. (Never thought I'd say that!)

Chuckwalla

Thanks nompere. Glad to hear its not just me who can't find much guidance on this!