Source confirms CGT eligibility for ETCs

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Exchange-traded product provider Source has confirmed all its ETCs will gain UK reporting status, making them eligible for capital gains tax treatment.

The product issuer has initially received confirmation from HMRC that its Physical Gold P-ETC has been granted reporting status with effect from 30 June 2009, enabling investors to potentially incur capital gains tax at 18% or 28%, rather than income tax of up to 50%. Source previously stated all its ETCs were subject to income tax rates, after being advised that the reporting rules were for offshore funds, rather than securities (ETFM, July). Source managing director Michael John Lytle says these ETCs are notes but are being treated as funds for tax purposes. He says: "It's benefi...

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