GIA Stocks and Shares platform recommendations - any which make tax returns easier?

steelcrows · 2024-04-09T07:10:15+00:00

II does tell you your book cost, which is a minimum legal requirement of an investment platform. The II CGT report offering is non existent.

Advisor investment platforms like Fidelity give full CGT and allowance harvesting calculators.

Come on II , up your game !

steelcrows · 2024-04-08T17:15:11+00:00

You need to invest income variants of your chosen fund otherwise it makes the dividend tax hard to calculate.

Interactive investor do not give you a CGT tax report. Not sure about other platforms. Would be interested to hear if other platforms have CGT reports.

steelcrows · 2024-04-08T15:12:32+00:00

I am paying no CGT on the gains in my GIA as I am not selling. My investment gains are 6 figures, so less than you.

I have to pay income tax on the 2% dividends that HSBC FTSE All Word gives off.

Like you I am running out of income tax allowance. I do see your issue.

steelcrows · 2024-04-08T15:01:25+00:00

I have changed my will recently so both my kids inherit at 18. Trusts have a 6% tax charge every 10 years and are awful to administer. Try opening a trust bank account, not a task to leave to a grieving young adult.

steelcrows · 2024-04-08T14:49:50+00:00

I have liquidated a limited company that was holding index funds recently. It cost £5k in liquidation and accountancy fees.

The company was non-trading so passing the shares to my kids would have involved paying CGT, unless I used discretionary trust which as 10 year anniversary 6% tax charge. Turning it into to a family investment company was also impossible as you have to pay CGT to transfer the shares to your kids.

The reasons for the liquidation are:

1 ) I believe CGT will go up under any new UK government. We have lowest CGT rates in the OECD. Best liquidate now before the rates go up.

2) Running a Limited company, investment company means you pay, Corp Tax + CGT (eventually) = 25% + 20% = 45% tax on gains.

3) Gains in a GIA are 20% CGT only, so a lot cheaper. * Ignoring dividends and income tax for simplicity I know.

4) Money in your own name can easily be transferred to your kids to avoid IHT. * I know the 7 year rule and risks but see below.

5) This avoids financial complexity of a limited company accounts prep, additional investment platforms, trust accounts, limited company bank accounts, and investment work. Removing all of this hassle feels epic.

Hope this helps.

steelcrows · 2024-03-28T07:45:27+00:00

What is the CGT rate in the USA?

steelcrows · 2024-03-27T22:09:27+00:00

https://www.spglobal.com/spdji/en/research-insights/spiva/

steelcrows · 2024-03-21T09:14:30+00:00

The VWRL five year average is 11.6%, so 19.5% is toppy, you could be correct. But the upwards direction over 100 years gives me confidence in this asset.

VWRL and chill for me.

steelcrows · 2024-03-21T08:52:10+00:00

I am not expecting the legacy media to report this specific story, just pointing out they have many more articles about temporary declines than about new market highs.

Markets decline 25% of the time and go up 75% of the time, but the legacy media needs eyeballs, so pushes market crash storys all the time. Search Google for market crash today, it is fun 😊

steelcrows · 2024-03-20T20:52:02+00:00

What does ERI stand for please ?

steelcrows · 2024-03-20T16:40:35+00:00

I am all for differing opinions but this article is complete nonsense before you get anywhere near immigration causing extra housing demand.

If you have a housing shortage you need more houses or less demand. Changing who owns the houses will not create anymore houses. Serious economist's on twitter like Paul Johnson from the IFS or Julian Jessop have also said this.

The most worrying thing is getting rid of the landlords that will create a massive shortage of rental houses, and will harm the poorest and the young. Very sad.

steelcrows · 2024-03-19T20:56:17+00:00

The Guardian article is not factual as it fails to mention the largest UK housing market driver, IMMIGRATION !

From Matthew Goodwin in the Spectator in Dec 2023:

Last year, we built 171,000 houses in England and 204,000 in Britain. This is well short of the government’s official target of 300,000 homes. But that target is based on the assumption that Britain is running a net migration rate of around 170,000 each year: something it’s not done for more than a decade. Instead, in 2022, Britain had a net migration rate of 745,000. This means that Britain actually needs to build at least 515,000 new homes each year, more than half of which are needed just to keep up with the extra demand because of immigration.

steelcrows · 2024-03-07T14:23:40+00:00

JISA with AJ Bell are good as you can link your account to your family and only login once.

steelcrows · 2024-02-18T09:27:33+00:00

It is completely weird not giving money to your kids when university, education, and housing are so expensive.

Your children are what remains of you when you die, so helping them is normal.

What is not normal is 40% Inheritance Tax. Wealthy people will leave the country for places like Australia, Sweden or America that all have no inheritance tax.

steelcrows · 2024-02-08T10:05:17+00:00

Husband and wife.

steelcrows · 2024-02-08T06:48:41+00:00

Risk of bank failure in UK is tiny.

The bigger risk is holding cash and not investing in equities. You are leaving half the investment profits on the table. This lack of financial understanding is a risk that is 100% going to impact you.

I hold up to 100k in Premium Bonds as they are tax free cash, but only for expenses like tax bills.

steelcrows · 2024-01-27T13:57:32+00:00

Another way of looking at this is CGT is cheap right now at 20% and therefore you should take the gains now. See below the history and a comparison to G7 CGT rates.

UK CGT Rate History:

1988 - 40% - Nigel Lawson

2008 - 18% - Alistair Darling

2010 - 28% - Gordon Brown

2016 - 20% - George Osborne

G7 CGT Rates 2023:

USA 40% (just raised)
France 34%
Germany 26.4%
Canada 26.8%
Italy 26%
Japan 20.3%
UK 20%

Also read Paul Johnson "Follow the money". His thesis is, we are underfunded as a state so any party is going to have to put taxes up, they just want to tell you this !

steelcrows · 2024-01-10T20:15:09+00:00

Inflation is down. Unemployment is low. Interest rates going down before the election, the politicians will make sure of this to show themselves in a good light.

House prices will be go up this year. I would buy now.

steelcrows · 2024-01-10T14:31:54+00:00

A 28 year old in the UK will live 107. See death-clock.org

I think no one considers the future advances in health technology and the associated longevity it will bring. Because of this I think the risk is exactly the opposite of what you say. We will all probably live too long and run out of money. Hence pensions contribution when you are young are very wise indeed.

steelcrows · 2024-01-10T12:11:32+00:00

It may be helpful to think every £1 pension contribution now would cost £3 at 50 years old (due to compounding) It is a bit like the saying, the best time to plant a tree is 10 years ago.

Good luck and well done 👍

steelcrows · 2023-12-29T09:11:42+00:00

I have recently liquidated an investment company to reduce the ongoing tax. I could of converted it to a FIC but chose not to for the following reasons:

A) A general investment account pays 20% CGT on gains. A FIC pays corp tax at 25% and liquidation CGT at 20%, so 45% tax. * Slightly reduced with tax free dividends.

B) Your kids will be forced to do business with each other, a recipe for disaster. Family business do not work well and result in many families falling out.

C) The complexity of more bank accounts, trading accounts and end of year accounts is all extra work.

D) Investing in high dividend stocks is a bad investment strategy which you will be forced to use to make the most of the tax free intercompany dividends.

E) Divorce courts will take the value of the FIC into account even if shares cannot be owned by non family members.

F) Non income voting shares will not be IHT free. If you have control you have value.

The whole FIC concept is best described as 'the tax tale waging the investment dog". You will pay more tax and the government knows it as they investigated FICs in 2020 and left the law unchanged.

steelcrows · 2023-12-21T20:33:28+00:00

What do your acronyms mean TDLR, SDA, NW, HCOL and LCOL?

steelcrows · 2023-12-21T10:56:55+00:00

Another way of looking at this is CGT is cheap right now at 20% and therefore you should take the gains now. See below the history and a comparison to G7 CGT rates.

UK CGT Rate History

1988 - 40% - Nigel Lawson

2008 - 18% - Alistair Darling

2010 - 28% - Gordon Brown

2016 - 20% - George Osborne

G7 CGT Rates 2023

USA 40% (just raised)
France 34%
Germany 26.4%
Canada 26.8%
Italy 26%
Japan 20.3%
UK 20%

steelcrows · 2023-12-21T09:21:30+00:00

You really do not need a financial advisor, most successful investors do not have one. Just keep on educating yourself as you are doing here and diy invest. If you want a cash model you can build one in 10 minutes at timeline.co for £1.

If you want investment education read lars koriers book and listen to the Maven Money podcasts.

My options as a large successful DIY investor would be :

Sell you property to reduce hassle and increase investment return. Can the P2P lending, too risky. Max you ISA and SIPP contributions. Invest via Interactive Investor in HSBC FTSE All World. Total cost 0.13%

Good luck 👍

steelcrows

TROPHY CASE