Equalisation

[adennis]

Could someone help with how to record equalisation transactions associated with UK Units Trusts and OEICs.
Mark, these are a cash receipt against a reduction in the cost of the fund bought so are a capital event not an income one.

Appreciate thoughts

[Mark]

Hi adennis,

I'm not familiar with these types of transactions. However, it sounds like a Return of Capital distribution. With this type of distribution, you are receiving money back, lowering your tax cost basis. There is no change in the number of shares owned.