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GIA ~ Basics, Tips & Taxation
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Stephen B.
Posted: 16 January 2024 19:23:20(UTC)
#11

Joined: 26/09/2012(UTC)
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The basic point is that a GIA has no special tax status - interest is the same as any interest and dividends are the same as any dividends. One advantage is that the provider should give you a consolidated tax statement at the end of the year so you only have one overall number for each rather than having to keep track of everything separately.

For capital gains tax each investment is treated separately. The rules for calculating CGT can be quite complex and the CGT allowance is now quite small so it will help if you keep things simple - if a given investment is bought and then sold the gain/loss is just the difference, but if you buy and sell the same investment in multiple transactions it's harder, as it is if you sell and buy back within 30 days.
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Keith Clunk on 26/01/2024(UTC), Tim D on 26/01/2024(UTC)
SoBo65
Posted: 16 January 2024 19:48:08(UTC)
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I only use my GIA account to hold short dated (1-7 years) low coupon GILTS which I will likely hold to maturity to generate CGT free return. Tax will of course be due on the coupon income.
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DHardisty on 17/01/2024(UTC), Keith Clunk on 26/01/2024(UTC)
mgk
Posted: 17 January 2024 13:31:29(UTC)
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Just a note about tax reporting.

For offshore funds, which includes all ETFs but also some OEICs, there can be "excess reportable income" each year. That notional amount (which is not actually paid out by the fund) is taxed as interest or dividend as appropriate.

Even distributing funds can have non-zero excess reportable income. It's quite likely that any platform report of dividends received does not include any excess reportable income amounts.
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Dexi on 17/01/2024(UTC)
Newbie
Posted: 17 January 2024 14:03:50(UTC)
#14

Joined: 31/01/2012(UTC)
Posts: 3,819
Given the title of this forum includes GIA and Taxation, I thought it would be better to post the question here rather than start a new thread.

What is the situation with the 30 day rule and CGT when you have two share/unit classes and make monthly contributions.

The holding started with the ACC version but after the mess with end of tax year reporting an INC version was started and new monthly contributions went into there. So currently have some funds in the ACC version and also in the INC version.

Now want to reduce some of the ACC version for CGT reasons.
However given they have a regular monthly payment going into the INC version, will HMRC look at it a negative manner.

Or is it better to cancel the monthly payment for a month or two.

Thanks
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Keith Clunk
Posted: 26 January 2024 07:11:23(UTC)
#15

Joined: 07/05/2019(UTC)
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Newbie;293050 wrote:
What is the situation with the 30 day rule and CGT when you have two share/unit classes and make monthly contributions.

The holding started with the ACC version but after the mess with end of tax year reporting an INC version was started and new monthly contributions went into there. So currently have some funds in the ACC version and also in the INC version.


In the past 10 days particularly (since starting this thread) I've done much research in the GIA tax department having previously only invested in tax sheltered accounts (SIPP & ISAs). I can see now how much I took those for granted.

What I now understand regarding this is if sell an ACC fund and buy the same INC fund it is not a disposal for CGT (Non Capital Gain event). ACC to INC is considered a re-organisation of funds, not a disposal, if done so in a timely manner (>30 days).
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Tim D on 26/01/2024(UTC), Newbie on 26/01/2024(UTC)
JayW
Posted: 28 January 2024 14:12:39(UTC)
#16

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It's best not to think of a GIA as a distinct "thing", but simply regard everything held within in it as if it was held separately by you on a personal basis. A GIA doesn't confer any special benefits, it's just a name for the place that is outside any tax-advantaged wrapper such as an ISA or pension.
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Tim D on 29/01/2024(UTC)
Andrew1952
Posted: 29 February 2024 15:36:24(UTC)
#17

Joined: 06/07/2019(UTC)
Posts: 538
JayW;294184 wrote:
It's best not to think of a GIA as a distinct "thing", but simply regard everything held within in it as if it was held separately by you on a personal basis. A GIA doesn't confer any special benefits, it's just a name for the place that is outside any tax-advantaged wrapper such as an ISA or pension.


Noone seems to have pointed out that the choice of investment manager
is important if you hold a lot of uninvested cash. Some managers will charge
you fees for holding your cash if their charging structure is simply a
percentage on everything you hold.

This is in addition to earning more money on your uninvested cash than
they pay you in interest. The FCA have issued warnings about this.
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