Investment Trust Dividends

Dividend re-investment best inside a tax wrapper

My investment pot has swelled to £46,100 in eight years – have I dug myself into a capital gains tax trap?

Story by Harvey Dorset

I’ve been making regular monthly investment contributions and reinvesting the dividends.

I have paid £300 in each month for the past 97 months, and in doing so have accumulated £46,100 from a total investment of £29,100 plus the dividends that I have reinvested.

How can I calculate capital gains tax on this investment, and have I dug myself into a tax trap?

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