Vanguard GIA information for my Self assessment

ColdIron

dllive said:

 (yes theres lots of overlap etc, I know I need to simplify! )

Perhaps an opportunity to simplify?

S&P 500 UCITS ETF (VUSA)

Your U.S. Equity Index Fund?

FTSE All-World UCITS ETF (VWRL)

Plenty of All World OEIC alternatives

FTSE All-World High Dividend Yield UCITS ETF

This is basically a filtered version of the FTSE All-World Index to provide higher dividends. Do you need them? Seems at odds with your other selections

Depending upon your objectives most would choose VWRL or VHYL, not both

FTSE Emerging Markets UCITS ETF 

Again plenty of OEIC alternatives (if you think you need a dedicated EM allocation)

GeoffTF

dllive said:

Hmm, ok, thanks @GeoffTF . 

This sentence from Monevator's post resonates: "The danger with DIY investing is that you might miss something that gets you into trouble. Something you never knew you didn’t know."

To keep my tax affairs simpler, Im happy to migrate from the Ireland domiciled ETFs to their UK equivalents. 

UK domiciled OEICs are not really simpler. OEICs have Equalisation. Offshore funds (e.g. ETFs) have Excess Reportable Income. If you want to make life easier, cut down to one fund, e.g. LifeStrategy 100. You do not need to use a GA unless you are a high roller. If you are a high roller Vanguard's platform is expensive (iWeb is cheaper).

wmb194

GeoffTF said:

dllive said:

Hmm, ok, thanks @GeoffTF . 

This sentence from Monevator's post resonates: "The danger with DIY investing is that you might miss something that gets you into trouble. Something you never knew you didn’t know."

To keep my tax affairs simpler, Im happy to migrate from the Ireland domiciled ETFs to their UK equivalents. 

UK domiciled OEICs are not really simpler. OEICs have Equalisation. Offshore funds (e.g. ETFs) have Excess Reportable Income. If you want to make life easier, cut down to one fund, e.g. LifeStrategy 100. You do not need to use a GA unless you are a high roller. If you are a high roller Vanguard's platform is expensive (iWeb is cheaper).

Equalisation is just a one time thing every time you make a purchase, though, and is transparent whilst ERI is an ongoing, opaque annoyance.

ColdIron

GeoffTF said:

dllive said:

Hmm, ok, thanks @GeoffTF . 

This sentence from Monevator's post resonates: "The danger with DIY investing is that you might miss something that gets you into trouble. Something you never knew you didn’t know."

To keep my tax affairs simpler, Im happy to migrate from the Ireland domiciled ETFs to their UK equivalents. 

UK domiciled OEICs are not really simpler. OEICs have Equalisation. Offshore funds (e.g. ETFs) have Excess Reportable Income. If you want to make life easier, cut down to one fund, e.g. LifeStrategy 100. You do not need to use a GA unless you are a high roller. If you are a high roller Vanguard's platform is expensive (iWeb is cheaper).

Equalisation is a one off consideration and detailed on your tax certificate. ERI isn't. I'd rather deal with the former

If you want to make life easier, cut down to one fund

Agree but you will still need to make a choice of the above

You do not need to use a GA unless you are a high roller. If you are a high roller Vanguard's platform is expensive (iWeb is cheaper).

Yes but it doesn't solve the self assessment issue in the OP

GeoffTF

Another consideration is the potential cost:

https://monevator.com/compare-uk-cheapest-online-brokers/

Most platforms charge percentage fees for holding OEICs. HSDL (Lloyds/BoS/Halifax/iWeb), Interactive Investor and ShareDeal Active are the only exceptions that I know of. If you are holding OEICs in a General Account with big capital gains, you will be stuck if they all get greedy. (Vanguard does a relatively low cap of £375, which limits the risk for Vanguard funds, but that is still not cheap.) Most platforms do not charge percentage fees for holding ETFs.

EthicsGradient

dllive said:

dunstonh said:

I only ever plan to keep around £10k in my GIA so that Im under the dividend and capital gains limit.

With the revised dividend allowances, you could actually exceed the allowance with just 10k with some investments.

Just to hijack my own thread... can I ask about how best to try and keep within the dividend and CGT allowances?

I hold a few income producing funds, but Ill pick one to keep it simple: VWRL.

VWRL has a yield of 1.98%. So really, I could have £50k which would have an income of £990 which is just within my dividend threshold. (this is assuming the fund never grows/shrinks and always stays static at £50k)

Regards growth, if the fund grows 7%pa over 2 years, that would grow the fund to £57,245 which would be £4,245 over the £3k CGT allowance.

Is my thinking broadly right? If so, how do you - or is there a way - to keep within the allowances?

You say "you could actually exceed the allowance with just 10k with some investments." They would have to be some big paying yielding funds to exceed the £1k Dividend allowance on £10k?

But in tax year 2024-25, the band for paying 0% on dividends is set to reduce again, to £500. So by then, an investment of 10k would need to yield 5% to exceed that, which is possible (FTSE 100 was paying 4.4% in March 2020: https://www.ii.co.uk/analysis-commentary/20-high-yielding-active-fund-favourites-ii512639 ).

wmb194

EthicsGradient said:

dllive said:

dunstonh said:

I only ever plan to keep around £10k in my GIA so that Im under the dividend and capital gains limit.

With the revised dividend allowances, you could actually exceed the allowance with just 10k with some investments.

Just to hijack my own thread... can I ask about how best to try and keep within the dividend and CGT allowances?

I hold a few income producing funds, but Ill pick one to keep it simple: VWRL.

VWRL has a yield of 1.98%. So really, I could have £50k which would have an income of £990 which is just within my dividend threshold. (this is assuming the fund never grows/shrinks and always stays static at £50k)

Regards growth, if the fund grows 7%pa over 2 years, that would grow the fund to £57,245 which would be £4,245 over the £3k CGT allowance.

Is my thinking broadly right? If so, how do you - or is there a way - to keep within the allowances?

You say "you could actually exceed the allowance with just 10k with some investments." They would have to be some big paying yielding funds to exceed the £1k Dividend allowance on £10k?

But in tax year 2024-25, the band for paying 0% on dividends is set to reduce again, to £500. So by then, an investment of 10k would need to yield 5% to exceed that, which is possible (FTSE 100 was paying 4.4% in March 2020: https://www.ii.co.uk/analysis-commentary/20-high-yielding-active-fund-favourites-ii512639 ).

Precisely. In the OP's other threads he writes that he already maxes out his annual Isa and Sipp contributions so, *shrug.* Sometimes you just accept that you might have to pay some tax.

dllive

wmb194 said:

EthicsGradient said:

dllive said:

dunstonh said:

I only ever plan to keep around £10k in my GIA so that Im under the dividend and capital gains limit.

With the revised dividend allowances, you could actually exceed the allowance with just 10k with some investments.

Just to hijack my own thread... can I ask about how best to try and keep within the dividend and CGT allowances?

I hold a few income producing funds, but Ill pick one to keep it simple: VWRL.

VWRL has a yield of 1.98%. So really, I could have £50k which would have an income of £990 which is just within my dividend threshold. (this is assuming the fund never grows/shrinks and always stays static at £50k)

Regards growth, if the fund grows 7%pa over 2 years, that would grow the fund to £57,245 which would be £4,245 over the £3k CGT allowance.

Is my thinking broadly right? If so, how do you - or is there a way - to keep within the allowances?

You say "you could actually exceed the allowance with just 10k with some investments." They would have to be some big paying yielding funds to exceed the £1k Dividend allowance on £10k?

But in tax year 2024-25, the band for paying 0% on dividends is set to reduce again, to £500. So by then, an investment of 10k would need to yield 5% to exceed that, which is possible (FTSE 100 was paying 4.4% in March 2020: https://www.ii.co.uk/analysis-commentary/20-high-yielding-active-fund-favourites-ii512639 ).

Precisely. In the OP's other threads he writes that he already maxes out his annual Isa and Sipp contributions so, *shrug.* Sometimes you just accept that you might have to pay some tax.

Indeed. Its a nice problem to have! I count myself very lucky. At the same time Id kick myself if I was missing an opportunity to reduce my annual tax liability a little. TBH ive had a 2 good income years, and in all likelihood work is going to dry up a little and Ill need the £10k from my GIA to help max my S&S ISA. So the GIA is perhaps a temporary thing anyway. I just want to make sure Im reporting everything I need to and declaring everything I need to. (Id no idea about ERI!)