Moving money from fund, tax to pay?

Toki

[FONT=&quot]I invested all my savings (£50k) in the Fidelity Moneybuilder UK Index fund a few months ago when the stock market was low and am now thinking of selling as I have made over £9,000 so far. [/FONT]
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[FONT=&quot]If I transfer the money out into my current account will I have to pay any form of tax on this? Is this classed as income or will I have to pay Capital Gains Tax?[/FONT]
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[FONT=&quot]Also, will this mean I will have to fill in a self assessment form next year?[/FONT]
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[FONT=&quot]Thanks in advance for your help.[/FONT]

yelf

it counts as cgt. but the annual allowance is £10,100 so you are fine

Rafter

any income earned on the fund while you have been invested would also have to be declared for income tax - fidelity should send you a statement with the information you will need.

Well done on the gain! Although putting all your savings in the stock market like that was a brave move - it seems to have paid off.

R.

dunstonh

Well done on the gain! Although putting all your savings in the stock market like that was a brave move - it seems to have paid off.

Totally daft. Yes, it may have paid off at present (although its only an 18% gain) but 100% into one fund focusing on one country and it bging all your savings is really not sensible investing. Its taking a punt.

Lokolo

dunstonh wrote: »

Totally daft. Yes, it may have paid off at present (although its only an 18% gain) but 100% into one fund focusing on one country and it bging all your savings is really not sensible investing. Its taking a punt.

Nothing wrong with putting all your money on red once in a while hehe

dunstonh

Lokolo wrote: »

Nothing wrong with putting all your money on red once in a while hehe

Remember the old Volkswagen advert of years ago. "this is the man that put everything on red and it came out black....."

They have done an awful revision of that advert for this recession. But anyway.....

bendix

It doesnt seem like a bad gamble to me. FTSE was 50% down from it's position 12 months earlier, and he's made a lovely 18% return.

And you're saying he's totally daft, dunstonh? I wish I could be as daft as he is.

You're an IFA. You know nothing of his objectives, circumstances or anything. Calling him totally daft is a bit rich.

jon3001

This reminds me of poker players who make bad decisions (e.g. calling against the odds) but get lucky and win anyway. They think the end result justifies the original decision.

dunstonh

And you're saying he's totally daft, dunstonh? I wish I could be as daft as he is.

You're an IFA. You know nothing of his objectives, circumstances or anything. Calling him totally daft is a bit rich.

So, you would put 100% of your savings on a single punt at a time when the market could have gone either way?

The fact the poster got away with it doesnt mean it was a good move. If you run across a motorway and get to the other side without being hit, doesnt mean you are clever. You are just lucky. This is how the banking crisis started. They took excessive risks that paid off. Over time they kept paying off and the risk was seen as lower than it really was. All was fine until it went wrong.

Toki

It was a calculated risk. As has been mentioned here already the FTSE all share was down under 2,000 when I put money in. I believed (correctly as it turns out) that the stock market would go up again in 1-3 years and I would make a substantial amount of money. As it turns out I have made 18% in less than a year and am happy with that.

If the market goes back down in the next few weeks / months I may put some money back in. However I believe it wasn't a very high risk. The market was bound to rise again, it was only a question of how long it was going to take.

If you think I am daft then that's fine, show me where else I could have made 18% in such a short space of time? I chose the Fidelity Moneybuilder UK Fund due to the low costs and the fund managers don't seem to do much better (some a lot worse) but the charges are much higher.

Hope that explains my risk. Thanks everyone for the advice. One last question, do I have to fill in a self assessment form to declare my profit for CGT purposes?

jon3001

Toki wrote: »

If you think I am daft then that's fine, show me where else I could have made 18% in such a short space of time?

Loads of places including: silver, platinum, oil, international bonds, corporate bonds, high yield bonds, emerging markets, commodity funds.

Would you have put your entire life savings in any of those too? Of these can you spot any that are less risky than the FTSE All-Share?