CCH CGT and Dividend Scheduling calculates CGT on securities and the dividends and other corporate actions that have occurred and posts the CGT and investment income into Personal Tax.
Using CGT&DS, the client enters details of purchases and sales and the choices a user made when there was a corporate action, e.g. whether the user bought the new shares offered in a rights issue. The system then calculates the CGT and the investment income and posts them into Personal Tax.
CGT&DS comes with a database, or "masterfile", of securities which is updated daily. It contains around 100,000 securities of which 50,000 are live. The masterfile contains details of securities, including dividends, interest, takeovers, demergers, redemptions etc. This data is downloaded from CCH using an automatic scheduled task. The data is used by CGT&DS to calculate the relevant transactions, saving the user from posting them manually.
This gives the following benefits over using brokers’ packs:
- Once the data is in CGT&DS, Personal Tax is automatically updated, saving the user from updating Personal Tax from the broker's pack.
- Not all brokers issue a pack. So the accountant could be left chasing the client for dividend vouchers etc.
- The CGT position depends on all a client’s disposals, but not all the assets are necessarily held by one broker. So the accountant could be left consolidating assets and portfolios manually.
- The user can offer a value added service in checking the figures in the brokers’ packs. (Brokers do not charge for producing them and they can be far from perfect.)
- The user can perform “What If” calculations to see the CGT consequences of different disposals as part of tax planning.
- The user holds the client portfolios in a database making it easier to pass a job from one person to another within the practice, or from one office to another.
- For trusts and estates, accountants usually produce a set of accounts that includes an investment schedule. This can be produced from CGT&DS.
Previous users of SecTAX will benefit from the modern look and feel, together with the higher quality of securities data supplied.