x-o paying no interest

olbas_oil

I have a large cash balance within my x-o trading account which is paying no interest. Is there a low-risk money-market type of investment with monthly distribution that I could invest in in the short term (6-12 months) to produce dividends/interest? I need to avoid capital gains, because I will exceed next year's allowance. I don't think X-O allow purchase of funds: "You can invest in a wide range of products including UK listed shares, Gilts, Bonds, Exchange Traded Funds and Investment Trusts"

masonic

CSH2 is probably the cheapest option, but be aware of the share price, which is currently a little over £1000. The other thing that's a bit of a pain is that it is accumulating, so you'll need to do some sums when you come to make a disposal. There is also XSTR, which has a much lower share price and is distributing, but has a higher fee.

MX5huggy

I think you want a SONIA tracking ETF. 

That’s not a recommendation in anyway but 2 acronyms to start your research with. 

mark_cycling00

The gains may have to be treated as income rather than capital gains for tax purposes I believe.

Hopefully someone more experienced will clarify but you did mention capital gains in your post 

How you'd expected to know this weird stuff when doing your taxes is beyond me.

wmb194

olbas_oil said:

I have a large cash balance within my x-o trading account which is paying no interest. Is there a low-risk money-market type of investment with monthly distribution that I could invest in in the short term (6-12 months) to produce dividends/interest? I need to avoid capital gains, because I will exceed next year's allowance. I don't think X-O allow purchase of funds: "You can invest in a wide range of products including UK listed shares, Gilts, Bonds, Exchange Traded Funds and Investment Trusts"

Directly owned, short dated, conventional gilts would be an easy to understand and low risk option.

You can find a list of the gilts in issue here:

https://www.dmo.gov.uk/data/pdfdatareport?reportCode=D1A

When you say, "trading account" what type of account is it? Obviously, stating the obvious, if it's just a normal, taxable GIA - which it sounds like - simply withdraw the money and put it in a savings account.