GIA tax question

bcfclee27

I see that everyone has an annual capital gains allowance of £11,300
On a GIA.

Is this profit on your investment before you have to pay tax on any of it.

IE if I invested 30k in a GIA in December does that mean the GIA has to be worth £41,300 over the tax year before I have to declare it and pay any tax on it ?

Many thanks
Lee

msallen

You won't pay tax on it being worth over £41,300, you'll pay tax if you sell it for over £41,300 (all in one tax year). i.e. CGT is only payable when you realise the profit.

Keep_pedalling

CGT is only paid when you take your profits, so nothing to pay while your money stays invested.

We try to strip out as much of our annual allowances as possible in profit taking each year along with rebalancing and moving our full ISA allowances from GIA to ISA accounts.

bcfclee27

Ah right ok.

How about if in April I transfer 20k of the 30k from my GIA to my S&S ISA.

Does anything happen then IE will I need to do a tax return etc.

Keep_pedalling

bcfclee27 wrote: »

Ah right ok.

How about if in April I transfer 20k of the 30k from my GIA to my S&S ISA.

Does anything happen then IE will I need to do a tax return etc.

Unless you have made over 110% gain on that £20k you will be well under your annual allowance. So no you won’t have to do anything. With only £30k in your GIA it is highly unlikely that you will ever have to worry about GC, as next April you will have been able to have transferred the lot into an ISA account.

bcfclee27

Keep_pedalling wrote: »

Unless you have made over 110% gain on that £20k you will be well under your annual allowance. So no you won’t have to do anything. With only £30k in your GIA it is highly unlikely that you will ever have to worry about GC, as next April you will have been able to have transferred the lot into an ISA account.

That's great thanks for your help.

Eco_Miser

It's unlikely to affect you, but note that CGT and the allowance apply to all non-exempt Capital Gains realised within a tax year, eg second houses, fine wines, paintings, gold bullion.