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£50 Cashback with NatWest or RBS Invest

edited 3 July at 8:51AM in Savings & Investments
89 replies 5.5K views
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  • edited 4 July at 10:20PM
    AsgharAsghar Forumite
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    edited 4 July at 10:20PM
    Would the £50 cachback also count as profit?
    So if the £250 investment were to grow to £300 then with the cashback it would make £350 before selling. Then on your self assessment would you simply enter a Capital Gains amount of £100, minus the platform fee?
    Just read more info on the Natwest webite and the £50 cashback is paid into the current account. So would then the Capital Gain be £50 and the cashback count as interest?
  • edited 4 July at 10:28PM
    colstencolsten Forumite
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    edited 4 July at 10:28PM
    Cashback is never taxable. The £50 is cashback.
  • edited 4 July at 10:36PM
    ischris85ischris85 Forumite
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    edited 4 July at 10:36PM
    What would we do without colsten and others on this forum :)
  • bigadajbigadaj Forumite
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    colsten said:
    Worth a punt for £50 :)
    I want to invest in a GIA and get my payment in dividends as I've plenty of slack in the tax free allowance there, but I can run close to the £1000 tax free allowance for the interest along with my savings, although the plummeting rates are making that one easier too  :/
    Not sure where the break would be for interest/dividend payment though, i.e. lowest risk one will be interest, the 2nd highest risk one which looks like it might break the 60% bonds and be an interest payer payer so not sure, other 3 would be divis.

    All the NatWest Funds are "Accumulating", there is no "Income" option, so you won't see any dividend or other payment. Whichever of their risk options / Funds you choose, your return won't be a split of interest and dividend but it will be the change in Fund value. Hopefully this will be a positive change but it could be a negative, or no, change.


    Your taxable gain will be any positive difference between the price you bought your units in the Fund, and the price you sell them at, whenever you sell them. This is why you need to keep detailed records if you invest outside an S&S ISA.


    Your PSA won't be in any way affected by any gain for those Natwest/RBS investments. If you make a profit when you sell, it counts as Capital Gain and is subject to Capital Gains Tax if your total Capital Gains exceed your Capital Gains Tax allowance, which is £12,300 this financial year. Just for completeness, I should also mention that you cannot claim any tax relief if your investments make a loss.
    That's not fully correct. Accumulation funds will be a combination of dividends (distribution) and capital growth, so partially attributable to income and partially to capital gains. The fund will give a breakdown of the split on the tax certificate at the end of the tax year, but over multiple years it can be quite fiddly recording or working out what is income/ distribution and what is capital growth so it's often recommended to hold income units outsde a tax wrapper to make records and tax calculations easier.
  • colstencolsten Forumite
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    bigadaj said:
    colsten said:
    Worth a punt for £50 :)
    I want to invest in a GIA and get my payment in dividends as I've plenty of slack in the tax free allowance there, but I can run close to the £1000 tax free allowance for the interest along with my savings, although the plummeting rates are making that one easier too  :/
    Not sure where the break would be for interest/dividend payment though, i.e. lowest risk one will be interest, the 2nd highest risk one which looks like it might break the 60% bonds and be an interest payer payer so not sure, other 3 would be divis.

    All the NatWest Funds are "Accumulating", there is no "Income" option, so you won't see any dividend or other payment. Whichever of their risk options / Funds you choose, your return won't be a split of interest and dividend but it will be the change in Fund value. Hopefully this will be a positive change but it could be a negative, or no, change.


    Your taxable gain will be any positive difference between the price you bought your units in the Fund, and the price you sell them at, whenever you sell them. This is why you need to keep detailed records if you invest outside an S&S ISA.


    Your PSA won't be in any way affected by any gain for those Natwest/RBS investments. If you make a profit when you sell, it counts as Capital Gain and is subject to Capital Gains Tax if your total Capital Gains exceed your Capital Gains Tax allowance, which is £12,300 this financial year. Just for completeness, I should also mention that you cannot claim any tax relief if your investments make a loss.
    That's not fully correct. Accumulation funds will be a combination of dividends (distribution) and capital growth, so partially attributable to income and partially to capital gains. The fund will give a breakdown of the split on the tax certificate at the end of the tax year, but over multiple years it can be quite fiddly recording or working out what is income/ distribution and what is capital growth so it's often recommended to hold income units outsde a tax wrapper to make records and tax calculations easier.
    Well that's news to me but I admit I don't have 1st hand experience since I don't hold any unwrapped investments.

    I am at a loss though why you would hold income units outside a tax wrapper if all it means more complicated record keeping and calculations than if you used a tax wrapper. I would understand if you did it because you ran out of tax wrapper space but that's a problem most people wouldn't have, or have had in the last decade or two.
  • colstencolsten Forumite
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    The ultimate answer to taxing income from the Natwest  Funds: https://personal.natwest.com/personal/investments/natwest-invest/how-are-my-investments-taxed.html
  • quirkydeptlessquirkydeptless Forumite
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    colsten said:
    Thanks, should have noticed that.
    It answers my question exactly, portfolios 1 and 2 are interest, and portfolios 3, 4 and 5 are dividend.


    This is not investment advice.
    Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."
  • kaMelokaMelo Forumite
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    michaels said:
    Has anyone tried signing up to both yet?
    Yes, though both still in the processing stage at the moment. 
  • edited 5 July at 4:22PM
    ischris85ischris85 Forumite
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    edited 5 July at 4:22PM
    I have initiated a S&S ISA.  I note they state it takes two working days to setup. I can't see anywhere that monthly contributions need to be £50/the total investment needs to be equal to or greater then £250 as at 31.10.2020 to be eligible for the £50 cashback.
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