As both our Collective Retirement Account and Collective Investment Bond products are administered by our Life Company, we are taxed on income and gains arising from the investments we make on your clients’ behalf.
Our new technology is more transparent than the previous system, and a number of transactions that used to happen behind the scenes will now be more visible. The life fund tax charge on distributions within the Collective Retirement Account is one example of such a transaction.
It will often appear as ‘life fund tax charge – distribution’ accompanied by ‘life fund tax adjustment.’ Whether a life fund tax charge or adjustment is required depends on how we receive the relevant dividends or interest from the fund, e.g. whether franked or unfranked, gross or net of tax.