Gia investing

markharriers

Good Morning.

I have been investing a while now but only ever invested into my stocks isa. Soon im going to have a large lump sum to invest. Long story short after maxing my isa contributions some to my SIPP my next route is a GIA. I have never used one of these although I know they are the same but Its now the Tax rapper isn't there. My plan is to invest into an all world and eventually when the new tax years come round "bed and isa" over to my stocks isa. Now im just after opinions on the following..

My plan will be to first max stocks isa April (new tax year 26/27) then invest all into my GIA. When the new tax year comes round (27/28) if for example my GIA has made me well above the 3k threshold hold in CGT do you guys just move over up to that limit thus avoiding CGT. For example say selling £10k means 3k profit. With the remaining £10k allowance would you wait to see throughout the year for a loss to appear then move the remaining £10k over? Move the £10k over regardless and take the hit on CGT or say the profit didn't drop that tax year only move the £10k over and wait until the new tax year to when my CGT allowance resets and continue to do that each year? I know theres not always a right or wrong way in this world but you advise would be mech appreciated.

eskbanker

Bear in mind that you'll have a £3K CGT allowance for both 2026/27 and 2027/28, so you could sell enough units to use that up this time next year and then another batch a week later, i.e. into the 2027/28 year, paying all the proceeds into the ISA at that point.

InvesterJones

There are also dividend considerations - if you have 20K in an all-world then you'll probably get more than the annual dividend allowance - and going for an acc version of a fund doesn't prevent this, it just means you have to dig into the figures a bit more to find it!

markharriers

https://forums.moneysavingexpert.com/discussion/comment/81944412#Comment_81944412

Thank you. Im aiming to max my stocks isa for 26/7 with my cash so my bed and isa wouldn't work as I wouldn't have any allowance left say March 2027 to bed and isa back in.

markharriers

Yes that's a good point! Regards dividends i would just have to pay the tax as there isn't away around it that I can think of.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81944492#Comment_81944492

Getting unwrapped investments into an ISA entails selling, transferring cash proceeds and then repurchasing - it's often bundled together by providers as effectively a combined process for administrative simplicity but it remains three tasks that don't have to be completed within the same tax year, so I was suggesting selling GIA units towards the end of the 2026/27 year (to use your CGT allowance for that year) and not paying the proceeds into the ISA after the start of 2027/28, once your new £20K ISA contribution allowance has become available.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81944497#Comment_81944497

Not if you want to invest in all-world or other mainstream equities. If the thought fills you with dread, you could always build a ladder of low coupon gilts such that 20K matured each year ready for an ISA. But you'd be diversifying away from equities which you might already be doing elsewhere.

markharriers

https://forums.moneysavingexpert.com/discussion/comment/81944524#Comment_81944524

Thank you! I understand. With regards to the bed and isa as you say its simply 3 stages. Do you think I would need a platform that offers bed and isa or doesn't it matter as can do the process myself manually? I was just wondering if I would need to change my platform as my current one doesn't offer it bit like you say its just 3 steps.

markharriers

No my plan is just investing in 1 all world. I would need to think of a plan as like you are saying I would have to find the cash to pay the dividend tax as I wouldn't really want to sell shares to pay it.

Did think I could use the DIST fund to then pay for it but that means money coming out my investments.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81944571#Comment_81944571

Yes, it's just three steps and not difficult to do them independently so not worth changing platforms specifically to access a bundled Bed & ISA facility IMHO.

DRS1

One reason for doing a Bed & ISA with the same platform is that you may save on transaction costs. Of course you may already be using something which doesn't charge transaction costs anyway.