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best unit trust
duck33_2
Posts: 3 Newbie
I have been a small investor with sterling using investment bonds & isa products, could you tell me if i would be better off using unit trusts? Also which company?
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Comments
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Sterling only retail unit trust/OEIC funds for their S&S ISA. They also retail them unwrapped as all fund supermarkets do. So, you are using unit trusts for that.
As for the investment bond, is that tax wrapper most suitable for you compared to unwrapped investments?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thank you for the info, I am concerned that with the changes to cgt at the emergency budget I will end up paying a chunk of cgt, so was considering cashing in parts of the investment bond ( within 10k limit for each tax year) & then putting the money in an shares isa using a fund supermaket ( may be Fidelity?).I would appreciate your thoughts?0
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Investment bonds are not liable to capital gains tax. Its one of the key benefits of the investment bond tax wrapper. Unit trusts are potentially liable to CGT.
So, in effect, you would be taking it out of a wrapper that has no CGT liability to put it into one that does. Therefore creating the very thing you wish to avoid.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
No, you appear to have misread my last comments as I said to put in an isa which has no cgt. I know that investment bonds didnt used to be liable to cgt but I thought this had changed June 2010?0
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I know that investment bonds didnt used to be liable to cgt but I thought this had changed June 2010?
No change on the investment bond front and no plans, rumours or hints there will be either.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
All income and capital gains within an investment bond are already taxed at basic rate within the bond and this can't be be reclaimed regardless of whether you would otherwise have been liable to pay tax. So you could be paying tax in a bond that you wouldn't pay otherwise.
With other investments, including unit trusts, you are allowed up to £10,100 pa of capital gains without having to pay capital gains tax. It's true though that there could sometimes be advantages in certain circumstances.
Read more about investment bonds and why advisers love to sell them on Justin Modray's site: www.candidmoney.com/questions/question286.aspx0
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