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CGT ON 'NOTIONAL' GAIN GIA FOR TAX RETURN
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mildew50
Posts: 5 Forumite

in Cutting tax
Hi
I have a GIA and I am now filling out my tax return. The statement from my GIA provider includes a consolidated tax certificate which shows the dividends that have been earned on the funds in the GIA and on which I know that I will pay income tax. The dividends themselves are now just part of the GIA. Separately the statement from the GIA includes a Capital Gains report showing gains and losses for the year. I haven't done anything with the funds in the GIA over the year so are these gains and losses 'notional' i.e the increase or decrease in value of the various investments over the year or have the gains or losses arisen where my provider may have switched investments over the year?
Do I pay CGT on the net gains shown on the report (less any annual CGT allowance) even though the funds are still in the GIA and nothing has been 'extracted' from the GIA by me over the year?
I am paying the GIA provider annual fees - can I deduct these from my capital gain or income to reduce my tax?
Hope that all makes sense
I have a GIA and I am now filling out my tax return. The statement from my GIA provider includes a consolidated tax certificate which shows the dividends that have been earned on the funds in the GIA and on which I know that I will pay income tax. The dividends themselves are now just part of the GIA. Separately the statement from the GIA includes a Capital Gains report showing gains and losses for the year. I haven't done anything with the funds in the GIA over the year so are these gains and losses 'notional' i.e the increase or decrease in value of the various investments over the year or have the gains or losses arisen where my provider may have switched investments over the year?
Do I pay CGT on the net gains shown on the report (less any annual CGT allowance) even though the funds are still in the GIA and nothing has been 'extracted' from the GIA by me over the year?
I am paying the GIA provider annual fees - can I deduct these from my capital gain or income to reduce my tax?
Hope that all makes sense
0
Comments
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No these are paper gains, you will only have a CGT liability if you actually sell any of these assets0
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Has the provider switched investments that you hold? If so, then yes, the CGT will be payable. It does not matter whether you have withdrawn monies from the GIA or not.
It would be unusual for a provider to send a “notional” CGT statement.No, you cannot offset your fees against your capital gain.I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
Are you sure the Capital Gains statement isn't just an investment report?0
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Thank you all for your comments
The statement from the provider is called "Capital Gains Tax Report" - so I think that maybe the provider has switched investments which means presumably that we have effectively sold some investments in the GIA and bought some other investments in the GIA so regardless of the fact that I have not extracted those gains, they are actual gains rather than paper gains so CGT is payable?
Noted re no right to deduct provider fees to reduce our gain0 -
So a third party can buy and sell your shares without you having a say in the matter?
Is that discretionary portfolio management?
Is that a good idea?0 -
yes it is a discretionary managed portfolio GIA so the provider (it is a financial advisory firm) manage the GIA.
I am hoping its a good idea!0 -
mildew50 said:Thank you all for your comments
The statement from the provider is called "Capital Gains Tax Report" - so I think that maybe the provider has switched investments which means presumably that we have effectively sold some investments in the GIA and bought some other investments in the GIA so regardless of the fact that I have not extracted those gains, they are actual gains rather than paper gains so CGT is payable?
Noted re no right to deduct provider fees to reduce our gainI am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
DRS1 said:So a third party can buy and sell your shares without you having a say in the matter?
Is that discretionary portfolio management?
Is that a good idea?0 -
mildew50 said:yes it is a discretionary managed portfolio GIA so the provider (it is a financial advisory firm) manage the GIA.
I am hoping its a good idea!0 -
Nomunnofun1 said:DRS1 said:So a third party can buy and sell your shares without you having a say in the matter?
Is that discretionary portfolio management?
Is that a good idea?
0
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