General investment accounts UK domiciled

BoyJohn811

Hi, I am new in this forum. I was wondering if I could ask for some advice regarding general investment accounts (I have used up my ISA for this year). I have around 20-30k that I would like to invest in some ETF or fund. I already have a Vanguard account so I was thinking about opening a GIA with them and use one of their LifeStrategy options. Please correct me if I am wrong, I believe I need to pay capital gains tax, dividends tax, and excess reportable income tax. Regarding the first two, I just need to check the report that my provider sends me annually and see if I am above the limit - with 20-30k principal, I guess I will not be getting more than the limit (12300 and 2000). However, I am not sure about the excess reportable income tax. If possible, I would like to avoid tax simply because I would need to fill in a self-assessment form just for this. Could someone suggest what to invest in to avoid this excess reportable income tax? Something that is domiciled in the UK? It would be great if the Vanguard platform already offered it.

I checked the Vanguard general tax information site "List of reporting funds (ETFs and Non UK-domiciled)" and I did not see the Lifestrategy funds on it, does this mean those are all UK domiciled so I only need to pay attention to not go over the capital gains and dividends allowances?

Thank you very much.

EthicsGradient

Excess reportable income is added to to the 'real' income you actually receive, and the total is taxed. So if that total comes in under £2,000 per year (which I would expect for £20-30k principal - but it the income grew significantly, or you added more principal to it in later years, you might become liable), you won't have tax to pay, and I believe (though I can't swear to this) that a figure like that would not mean you have to start doing self-assessment.

Lifestrategy are funds, so you wouldn't expect ERI for them anyway - all income for the fund is reported and either distributed to you, or accumulated and counted as income even though you don't get it as cash. ETFs should be checked for ERI - even if they are distributing ETFs, since some have a small amount of ERI anyway.

BoyJohn811

Thank you very much, that clarifies these for me. I think I will just stick to the LifeStrategy ones.

ColdIron

Just make sure you keep accurate and complete records of any purchases or sales, your contract notes should suffice