Frequently Asked Question
A General Investment Account is a plain, vanilla investing account that comes with no tax benefits. Any investment activity is therefore subject to tax, depending on whether gains or income has exceeded your personal tax thresholds for the tax year.
We would recommend using these accounts only after you’ve exhausted your annual ISA or SIPP provisions, as these come with enormous tax benefits which can significantly impact investment returns.
As GIAs are subject to tax, you may face capital gains tax (CGT) on capital gains (profits from the rise in the value of assets), as well as taxes on interest (bonds or cash) or dividend income, depending on whether you have exceeded your personal tax thresholds with each for the tax year.
Before paying any tax, in each tax year you may earn up to £12,300 in capital gains, £1,000 in interest (bonds or cash), and £2,000 in dividend income (interest from shares). Exceeding these amounts outside of an ISA or SIPP will mean you will have to pay tax.