Holding ETFs in a non isa account

Eco_Miser

DjangoUnchained said:

dunstonh said:

DjangoUnchained said:

dunstonh said:

I did intend to hold them for 10+ years.

That is not a great idea.  You want to be using your annual CGT allowance and potentially doing bed & ISA if you are not using the ISA allowance in full each year.

So, some activity each year would be needed.

i intend to fully use my isa allowance anyway. If the dividends are just reininvested and not taken out is ther CGT on this?

You would just be increasing your final CGT bill if you do that.   You would look to trade each year to utilise the annual CGT allowance.

My plan was just leavebit in for ten years or more ,then if I need some just sell some each year, so not getting taxed all at once if that makes sense 

It makes sense, but you get taxed if you have a Capital Gain of more than £3k when you sell (and possibly even less in future). To minimise your tax, try to sell enough to make a gain of just less than £3k each year, then buy something similar with the proceeds. This reduces the accumulated gain on which you may have to pay tax when you sell.

EthicsGradient

DjangoUnchained said:

dunstonh said:

DjangoUnchained said:

dunstonh said:

I did intend to hold them for 10+ years.

That is not a great idea.  You want to be using your annual CGT allowance and potentially doing bed & ISA if you are not using the ISA allowance in full each year.

So, some activity each year would be needed.

i intend to fully use my isa allowance anyway. If the dividends are just reininvested and not taken out is ther CGT on this?

You would just be increasing your final CGT bill if you do that.   You would look to trade each year to utilise the annual CGT allowance.

My plan was just leavebit in for ten years or more ,then if I need some just sell some each year, so not getting taxed all at once if that makes sense 

That makes sense if you're prepared to take a few years at the end to withdraw it all (eg: £12k doubles in 10 years to £24k, govts keep the £3k allowance the same; it needs 4 years to withdraw it all with no tax). If there's any intermediate year in which you don't otherwise use the £20k ISA contribution limit fully, you could move some of it (again, up to £3k CG) into your ISA. Then its income (and capital gain) will be tax free, and it'll be available at once if you need it.

InvesterJones

DjangoUnchained said:

im a bit of a newbie to this, i will have to go away and look up what all these initials really mean. beginning to wish i hadnt bothered and just only used my isa allowance but then thats seriously going to limit me.

There's always the SIPP wrapper, given you're looking at a long timeframe anyway, and use your (already filled) ISA for anything you need to sell.

DjangoUnchained

InvesterJones said:

DjangoUnchained said:

im a bit of a newbie to this, i will have to go away and look up what all these initials really mean. beginning to wish i hadnt bothered and just only used my isa allowance but then thats seriously going to limit me.

There's always the SIPP wrapper, given you're looking at a long timeframe anyway, and use your (already filled) ISA for anything you need to sell.

Yes,  I'm self employed and for the last couple of years I've maxed out my personal pension contributions.