Why Invest In A General Investment Account?
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
A General Investment Account offers a flexible way to hold investments, without annual or lifetime limits.
It is similar to an ISA, but without the tax efficient treatment of your money. The benefit of this is that you can invest any amount of money, whereas a traditional ISA has a limit of £20,000.
You can also withdraw your money at any time, which gives you the benefit of flexibility with your investments.
With this flexibility in mind, the General Investment Account would be a good choice if you’ve used up your annual ISA allowance, or if you don’t want to lock your money away in a pension until you are 55.
You’ll have to pay Income and Capital Gains tax on the money in your investment account, based on your personal tax circumstances. To help with this, we’ll send you a personal tax report each year to help you fill in your tax return. Keep in mind that you have an annual capital gains allowance of £11,300 in the 2017/18 tax year.
If you’re a basic-rate taxpayer, the dividends you receive from holdings in a GIA have a non-refundable tax credit, which satisfies your income tax liability in full. If you’re a higher or additional-rate taxpayer, you may be liable at a higher rate.
With our General Investment Account, you can start a plan from £50 per month, and transfer in from other investments.