RBS General Investment Account

lunagirl_2

Currently have £3600 invested (£50 per month dd) with approx value of £4500. Change in value of roughly £800 Inc fees etc.

I know I pay CGT when I sell the investment but am I liable for income tax on the £800 for this FY? I am in higher tax bracket. 

Thanks

wmb194

lunagirl_2 said:

Currently have £3600 invested (£50 per month dd) with approx value of £4500. Change in value of roughly £800 Inc fees etc.

I know I pay CGT when I sell the investment but am I liable for income tax on the £800 for this FY? I am in higher tax bracket. 

Thanks

On the unrealised capital gain, no. You're only liable to CGT when you crystallise an investment i.e. sell it. You have a £3,000 0% CGT allowance anyway.

On the other hand dividends, interest and excess reportable income (relevant to overseas domiciled ETFs) are subject to income tax in the current tax year. They might be covered by 0% tax allowances though. 

On-the-coast

Agree with all written above, but I hope you’ve got a good reason this is a general investment account rather than a stocks and shares ISA?
putting it in the isa makes keeping track of dividends, distributions, capital gain etc so much easier (i.e. you don’t have to!)

lunagirl_2

I have used up my allowance for the year and the fees are relatively low so figured it was an ok way to save. I don't pay much attention to it and realised it was performing OK. But wasn't sure it that gain was classed as interest income or would I only be liable to CGT (not at this level) if I cashed it out.

poseidon1

lunagirl_2 said:

I have used up my allowance for the year and the fees are relatively low so figured it was an ok way to save. I don't pay much attention to it and realised it was performing OK. But wasn't sure it that gain was classed as interest income or would I only be liable to CGT (not at this level) if I cashed it out.

You have not indicated the precise funds you are invested.

 If they produce any dividends or interest ( albeit accumulated), these are declarable and taxable each year. RBS should supply a year end certificate of such income for tax reporting purposes. So you may have income to report but not realise it ( a typical oversight by newbie investors in GIAs).

lunagirl_2

Yes that's what I'm not sure about. It just says gains but no more breakdown!

poseidon1

lunagirl_2 said:

Yes that's what I'm not sure about. It just says gains but no more breakdown!

What are the names of the unit trust funds you are invested in?

jimjames

lunagirl_2 said:

I have used up my allowance for the year and the fees are relatively low so figured it was an ok way to save. I don't pay much attention to it and realised it was performing OK. But wasn't sure it that gain was classed as interest income or would I only be liable to CGT (not at this level) if I cashed it out.

Have you invested the full ISA allowance or is that in a cash ISA? If cash ISA then it makes far more sense to have cash outside an ISA and investments inside it as you will avoid the need to keep records as well as not needing to pay any income tax or CGT on your investment gains.

lunagirl_2

I have full amount in a cash isa and also a stocks and shares isa from previous years.

lunagirl_2

90% in equities and 10% in bonds according to fund fact sheet. 

poseidon1

lunagirl_2 said:

90% in equities and 10% in bonds according to fund fact sheet. 

Need the actual names of the funds, not just how invested. That will indicate whether they actually produce distributable/reportable income.