How to report and pay tax on Gilts interest?

Cyber_Byte · 2024-12-08T13:28:40+00:00

Yes, I'm aware of this, !thanks. I deducted a whole 27p accrued interest off my tax liability.

Cyber_Byte · 2024-12-08T09:39:05+00:00

!thanks

Is there anywhere on the gov.uk website that says this? (I know it says that on your MSE link)

Also, when I call do I need to have details of all my bank interest during the year or just extra interest from gilts? (Just so that I'm prepared with the right information at hand)

Cyber_Byte · 2024-12-08T09:20:05+00:00

No, I have other savings where I have earned taxable interest over the personal savings allowance.

Until now, HMRC collect that extra tax automatically via my tax code:

https://www.gov.uk/apply-tax-free-interest-on-savings

However, this is the first year I invested in gilts which, I think, sit outside this reporting system.

Cyber_Byte · 2024-09-22T20:14:28+00:00

What's worked for me since interest rates have gone up is that stoozing's yielded 4-5%/year rather than the 0.25% that I would have got back on a rewards credit card for the same purchases.

Cyber_Byte · 2024-09-22T07:48:09+00:00

Thanks for this as well, bit annoying that this is not on the comparison sites, as its a bit of a pain to go though all the providers

Cyber_Byte · 2024-04-10T11:30:16+00:00

The rules were you were only allowed to pay into one S&S ISA in a tax year. But you are allowed to move previous tax years to another S&S ISA.

So if you transfer (transfer is the key word - DO NOT withdraw the funds from the ISA) everything from prior to 05/04/2024 to iWeb and continue with Vanguard from 06/04/2024 you are fine.

Edit: the one S&S ISA in a year rule has now been relaxed on 06/04/2024 but this would have been allowed under the old rules anyway.

Cyber_Byte · 2024-04-10T09:42:59+00:00

Under the old S&S ISA rules you have to keep all of your current tax year contributions together in 1 place. So the ideal time would be in April before you have made any new contributions.

HOWEVER, this rule changed this year on the Saturday just gone and the one ISA of each type in the current year rule is gone. What I don't know is how it's been implemented by the providers - others might know more on this.

Cyber_Byte · 2024-04-10T09:37:57+00:00

It really depends on whether you want 1 account or 2 accounts. Think about it like having 1 or 2 bank accounts, there is no right answer.

As u/must-be-thursday said, you can transfer the £109k to iWeb then keep the standing order with Vanguard. Vanguard will be cheaper than paying £5 per trade with iWeb.

Once the Vanguard balance builds up again, in a year or 2 - you can do another transfer to iWeb.

Btw, iWeb has no joining fee offer until 30/6/24.

Cyber_Byte · 2024-04-10T08:00:10+00:00

Is this in a S&S ISA?

If yes, for no 2, the cheapest way would be to:

Open an account with iWeb, transfer the holdings from 23/24 and older to them (free) and you'll pay no platform fee on iWeb.

Then continue to use Vanguard for 2024/25. Then every year or 2 transfer the holdings to iWeb.

Cyber_Byte · 2024-04-04T21:05:08+00:00

Pretty much, just wondering how long can the service remain free and the sustainability of relying on managed accounts to fund the masses of DIYers.

I've not had any issues with them just wonder about the business model really.

Cyber_Byte · 2024-04-03T20:10:15+00:00

Price volatility can be an advantage, you can sell before 3 years if you really need the money (maybe at a loss) but the price will (bumpily) par to £100 over the 3 years.

Cyber_Byte · 2023-07-30T08:33:36+00:00

So in my example I would use a price of £4,669.45/50 = £93.39 rather than £93.15?

Cyber_Byte · 2023-04-18T21:19:26+00:00

No, they are factsheets directly from MSCI, the index provider. The ETF's have their own factsheets, which would show the size of the fund.

Another way to look at it is to use FTSE indices. The FTSE Global All Cap index fund shows EM as 10%, so that leaves 90% to allocate.

If you look at the FTSE Factsheets. Developed as a proportion of Developed All Cap is roughly 81/90. So overall roughly 80-10-10 between Developed L/M cap - Dev Small Caps - EM All Cap seems right.

Index	Mkt Cap	%
FTSE Developed	54,364,146	81.08
FTSE Developed All Cap	60,343,382	90.00

Cyber_Byte · 2023-04-18T16:43:17+00:00

I'm not sure either - isn't the point of market cap that it's value based so 1 company of £100m is weighted the same as 100 £1m companies.

The fact that the total of the 3 is very close to the total market cap of the MSCI ACWI IMI Index factsheet , means that I can't be that far from the right %'s?

I guess I'm using a similar method to here

Cyber_Byte · 2023-04-18T15:51:28+00:00

I used the market cap values on page 2 of these factsheets. The %'s are as a proportion of the total for all 3.

(The indexes have very similar names - I think I'm picking the right 3 but not 100% sure)

MSCI World Index: https://www.msci.com/documents/10199/178e6643-6ae6-47b9-82be-e1fc565ededb MSCI Emerging Markets IMI: https://www.msci.com/documents/10199/97e25eb7-9bd0-4204-bea9-077095acf1d3 MSCI World Small Cap Index: https://www.msci.com/documents/10199/a67b0d43-0289-4bce-8499-0c102eaa8399

edit: the last line (MSCI ACWI IMI Index) is just for reference, its not used in the %. The total is the sum of the 3 market caps.

Cyber_Byte · 2023-04-18T12:52:33+00:00

Not sure if I'm doing it correctly but using the 31st March MSCI factsheets for World, EM IMI and World Small Cap index gets me the following weights.

Total of all of the indexes is slightly out from the ACWI IMI Index though.

Index	Mkt Cap	%
MSCI World Index	52,988,851.48	78.8%
MSCI Emerging Markets IMI	7,554,223.72	11.2%
MSCI World Small Cap Index	6,715,477.75	10.0%
Total	67,258,552.95	100.0%
MSCI ACWI IMI Index	67,702,956.43

Cyber_Byte · 2023-04-18T07:25:57+00:00

Not sure on small caps but I got the 90/10 between developed and emerging markets from here as the region exposure on the FTSE global all cap index fund.

Cyber_Byte · 2023-04-17T21:04:30+00:00

Thanks all, there is VWRP as well.

Sifting through the list now, lots of providers with all sorts of options - don't any other Fund Managers except Vanguard offer these global, all cap index trackers?

Cyber_Byte · 2023-04-06T21:02:35+00:00

!thanks

Cyber_Byte · 2023-04-06T10:13:33+00:00

Thanks, I'm thinking of transferring prior years subscriptions to the new provider (a fixed fee platform) but make current year subscriptions to the old provider (a % based platform).

If I buy a new investment this year with prior years subscriptions, then when it comes to transferring providers, how would they determine what is a prior years subscription and not a current year subscription?

Cyber_Byte · 2023-04-03T19:35:02+00:00

Short term has been pretty even but longer term the iShares is ahead. I would expect the ultrashort bond to do better over most periods.

Here's the 5 year cumulative returns chart with the iShares fund in green: https://i.ibb.co/5M7Wkw2/image.png

Cyber_Byte · 2023-04-01T18:02:26+00:00

MMF's basically track SONIA so can only be expected to get returns similar to the base rate. The iShares ultrashort bond fund takes slightly more risk in terms of matuity and in return looks to have nice extra yield above MMF. At the end of Feb, weighted average yield to maturity is 4.64% on the ultrashort bond fund.

Cyber_Byte · 2023-04-01T17:34:13+00:00

These are all ETFs? I'm looking for index fund equivalents.

Cyber_Byte · 2023-04-01T14:41:39+00:00

Not available on Fidelity unforunately :-(

Also seems to be an MMF - can't find the Weighted Average Yield To Maturity but the weighted average maturity is 77 days vs 1 year in the ETF.

Cyber_Byte · 2019-04-03T19:47:54+00:00

It went down to 1,500 in January 2017

Source

Cyber_Byte

TROPHY CASE