Deemed disposal is a complex tax that takes the joy out of investing in index funds, but there are ways to reduce its impact

Your pension should be prioritised over any other form of investing. Photo: Getty

Your pension should be prioritised over any other form of investing. Photo: Getty

I have been running monthly meet-up groups on personal finance and financial independence since 2019, and not a meet-up goes by that I don’t hear the term “deemed disposal”.

Deemed disposal is a tax on index funds that fall outside the standard capital gains tax rate of 33pc.