Nucleus says gross account launch will cut tax delays

Wrap provider Nucleus has launched a gross account allowing clients to receive interest from assets gross of tax and eliminating delays in reclaiming the tax back from HM Revenue & Customs (HMRC).

The new account will use a gross share class, or where this is not possible the fund manager will pay the interest distribution gross of tax on the existing fund.

Gross interest also applies to all balances held in the account’s cash account. This can remove delays from HMRC and ensures the full value of interest is applied at the point of allocation to the IFA client’s account.

The account has been launched with a range of funds from Nucleus’ top 50 most frequently traded fund managers.

Andrew Smith, Nucleus chief operations officer, said: ‘We believe the gross account will be vital for the likes of trustees of pension schemes, registered charities, local authorities, non-UK domiciled individuals or holders of offshore bonds.’

Smith said eligible assets held outside Nucleus can be transferred to the account, but recommended professional tax advice is sought to make sure clients are eligible to receive gross income and interest.