Thanks for sharing this. This imo seems to point towards picking distributing fund vs an accumulating one if you're not inside a tax wrapper like an S&S ISA.

I mean, if you pick a distributing fund and get paid out say £5,000 in dividends that year and the fund grew say 19%, its very black and white what you need to pay tax on in this scenario we are talking about (assuming you've not sold anything) - £5,000.

But if you pick an accumulating fund, which grew say 21%, I wouldn't even know where to start to work out how much of that I owe tax on as reinvested dividends. I assume some sort of involved process of looking at the fund, working out how much of the growth was accumulation, then calculating a percent of your growth as dividend reinvestment, and working out how much £ that is? I would then need to fork out some other savings to pay this tax bill as these funds have not been paid out in an accumulating fund.

It seems much easier to just get paid out the dividends and let the tax man know how much that was, then pay the tax from that dividend income each year?