ETF in a GIA

wmb194

MoneyMan01 said:

gravel_2 said:

leosayer said:

GeoffTF said:

MoneyMan01 said:

So in short, it doesn't matter which ETF (Div v Acc) is used. Going with one over the other isn't going to lower the tax bill?

Unfortunately it can. It is a real minefield. There is no substitute for knowing the rules and working out the numbers. It is safest to avoid accumulating finds in a GIA.

Please would you advise why it is safest to avoid acc funds in a GIA.

Don't buy Acc funds. Simple.

Why? Accumulating funds are good for compounding aren’t they? 

Or are you saying avoid them because it makes reporting tax on them more complicated? 

For your record keeping it's far easier to keep track of the dividends you've been paid. If you use a cheap broker e.g., T212 reinvesting the dividends yourself is cheap and easy.

GeoffTF

MoneyMan01 said:

gravel_2 said:

leosayer said:

GeoffTF said:

MoneyMan01 said:

So in short, it doesn't matter which ETF (Div v Acc) is used. Going with one over the other isn't going to lower the tax bill?

Unfortunately it can. It is a real minefield. There is no substitute for knowing the rules and working out the numbers. It is safest to avoid accumulating finds in a GIA.

Please would you advise why it is safest to avoid acc funds in a GIA.

Don't buy Acc funds. Simple.

Why? Accumulating funds are good for compounding aren’t they? 

Or are you saying avoid them because it makes reporting tax on them more complicated? 

It makes the accounting more complicated and difficult to understand. You can also end up paying more CGT in some circumstances. It is too complicated to explain all the issues here.

MoneyMan01

I’ve seen this from Vanguard:

ESG Developed World All Cap Equity Index Fund
GB00BLLZQL34

Apparently it is UK domiciled. 

I normally use InvestEngine, but cannot find this on there, so am having to look into using Vanguard. 

So, a couple of questions:

1) Does investing in this make things easier from a reporting of tax point of view?
2) Has anyone used Vanguard and can you advise what investing in this would cost due to platform and any other fees (I can see some fees, but not all, due to not having a Vanguard account at present)?

ColdIron

It's an open ended fund (OEIC) not an ETF

GeoffTF

It is GB domiciled OEIC, not an ETF. Vanguard charges 0.15% platform fee if you use their own platform and nothing else for OEICs. You pay a fee to trade ETFs in real time, but not at the next bulk dealing point. There are charges and costs within the fund, but you pay those irrespective of the platform you use.

MoneyMan01

I see, thanks. 

So there are no purchasing fees for OEIC's? 

Beyond the OEIC on-going yearly charge, it's just a yearly 0.15% fee from Vanguard on the total amount you have on their site?

Are there other platforms that are cheaper that I should be aware of?

ColdIron

Pretty comprehensive list here

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

MoneyMan01

So it could be worth purchasing via Vanguard, and then transferring to iWeb, given iWeb doesn't have platform fees?

ColdIron

Do you feel that the aggravation and time is worth it to save a fiver?

I'd skip a couple of coffees and have an easy life

MoneyMan01

True. I guess it all depends on how much and how frequent. For example, I'd be looking to make monthly purchases, so that £5 would become £60 over the year.

If it's in a GIA, can they be transferred from Vanguard to iWeb straight away, does anyone know?