Companies may have different policies on how they allow for tax on capital gains and losses. This could be due to taking a practical approach to some of the complexities of the tax calculation, or due to alignment of different policies when books are amalgamated. Many companies take a simplified approach in practice and consider the taxation of each unit fund assuming that it is the only fund run by the company. Therefore, for example, losses in one fund are considered usable only against gains in that same fund, even though there is actually no such ring-fencing in the company’s overall tax assessment. Hi - I quite did not understand the above paragraph, especially for any inference. Please can someone help me with a one-liner conclusion?
