General Investment Account record keeping

ColdIron

dllive said:

Can I ask - what would the Income equivalents of Invesco FTSE All-World (Acc)  and SPDR S&P 500 UCITS ETF (Acc) be?

For example, Ive searched on T212 for "Invesco FTSE All-World" and theres quite a few! Presumably I should get FTWG because its on the London Stock Exchange? What about SPDR S&P 500 UCITS ETF?

They are ETFs not funds/OEICs so my descriptions above aren't applicable as stated. With ETFs you can throw ERI (Excess Reportable Income) into the mix but remove equalisation

For Distributing shares you need to report dividends and ERI as income. Just to add to the fun factor ERI will probably not be on you annual CTC and you'll have to dig it out on the fund house's web site and as a Brucie bonus the reporting period is different to dividends. Quite do-able but additional hassle

Acc shares are (conversely) a bit simpler as everything is ERI, no dividends as such, but you'll still need to tease out the real gain for CGT

Personally I have always steered clear of unwrapped ETFs, life is too short

On a positive note one thing you might look at is finding an OEIC version of the ETF from another vendor for the same index so performance should be pretty much the same barring OCF (though perhaps not your platform charges)

dllive

Hmm, T212 only offers ETFs.

So - for minimal hassle - I should choose perhaps Vanguard's LifeStrategy 100% Equity Fund - Income class? If so, Ill forget about T212 and just use Vanguards platform.

GeoffTF

ColdIron said:

One position I wouldn't like to be in is having to deal with both equalisation and retained dividends

Equalisation does not apply to accumulation units.

dunstonh

So - for minimal hassle - I should choose perhaps Vanguard's LifeStrategy 100% Equity Fund - Income class? If so, Ill forget about T212 and just use Vanguards platform.

VLS100 would mean moving from a market cap fund to a managed weightings fund (home bias in particular) and its higher cost than a global tracker.   Obviously, there are many different global trackers that follow different benchmarks.  So, you could argue each different benchmark is effectively a managed decision but you need to decide how you want to invest first.  Then look at solutions.    

ColdIron

GeoffTF said:

ColdIron said:

One position I wouldn't like to be in is having to deal with both equalisation and retained dividends

Equalisation does not apply to accumulation units.

OP has Acc and Inc

dllive said:

I read that - for reporting tax etc - its far easier to invest in income classes of funds. Which is what Ive done. However, recently I invested in their accumulation versions by mistake.

flopsy1973

dllive said:

kempiejon said:

If you never sell you are potentially accumulating a tax event in the future. In my GIA I switch between funds every few years to reset capital gains. The capital gains allowance should be used, £3k per year profit compared to dividend income tax allowance of just £500. I heard about buying the income fund to make record keeping easier but subsequently learnt that some income versions have excess reportable income too.

Thats a good idea about resetting CGT!

Yes, Ive read about excess reportable income, although I believe thats not the case with funds traded in sterling. (again, I may be completely wrong!)

Sorry to hijack this but I will be in similar position possibly soon and I have no idea what to report.  What do you mean  switch funds to reset CGT ? 

eskbanker

flopsy1973 said:

dllive said:

kempiejon said:

If you never sell you are potentially accumulating a tax event in the future. In my GIA I switch between funds every few years to reset capital gains. The capital gains allowance should be used, £3k per year profit compared to dividend income tax allowance of just £500. I heard about buying the income fund to make record keeping easier but subsequently learnt that some income versions have excess reportable income too.

Thats a good idea about resetting CGT!

Yes, Ive read about excess reportable income, although I believe thats not the case with funds traded in sterling. (again, I may be completely wrong!)

Sorry to hijack this but I will be in similar position possibly soon and I have no idea what to report.  What do you mean  switch funds to reset CGT ? 

Because there's an annual 'use it or lose it' CGT allowance of £3K, those with significant unwrapped holdings can utilise this by selling enough to realise £3K of gains and then purchasing something else with the proceeds, to avoid more substantial taxable gains from building up over time.

masonic

dllive said:

Hmm, T212 only offers ETFs.

So - for minimal hassle - I should choose perhaps Vanguard's LifeStrategy 100% Equity Fund - Income class? If so, Ill forget about T212 and just use Vanguards platform.

iWeb might be worth considering to break out of the Vanguard stable, but if you were previously looking at a FTSE All World ETF, you could consider Vanguards Global All Cap Index fund, which is closer than VLS100 and which many would consider preferable to FTSE All World.

LHW99

GeoffTF said:

ColdIron said:

One position I wouldn't like to be in is having to deal with both equalisation and retained dividends

Equalisation does not apply to accumulation units.

I have a small holding of Fidelity Index World Acc on AJ Bell. There is equalisation

Came to a few pounds on last year's statement.

TheGreenFrog

LHW99 said:

GeoffTF said:

ColdIron said:

One position I wouldn't like to be in is having to deal with both equalisation and retained dividends

Equalisation does not apply to accumulation units.

I have a small holding of Fidelity Index World Acc on AJ Bell. There is equalisation

Came to a few pounds on last year's statement.

I have purchased many acc funds where there is equalisation and have had to factor both accrued income and equalisation into my CGT calculations.  Or maybe I have been doing it wrong!