LPT's and Income Tax

Hi can anyone tell me if i am to pay income tax on income i receive from LPT's which are tax deferred.

I mean if i am receiving a monthly income is also added at the end of the year where i have to pay tax on this income?

thanks

Triu

 

Hi Triu
If it is tax deferred then no tax is payable.

The tax deferred component actually acts to reduce the cost base of your units, hence the tax is deferred until you actually dispose of the units.

The year end tax statement will show that the tax deferred component is not required to be disclosed in your tax return.

I read that Morningstar were doing some analysis of funds to reflect an "after tax" position when comparing funds.

I havent seen the results yet.

NickM

 

Thanks Nick i appreciate your valuable input.