A General Investment Account (GIA) is an investment account that is not tax-protected. This means that any income or capital gains generated from investments held in a GIA will be subject to tax.
GIAs are a good option for investors who have already used up their ISA allowance or who want to invest more than the ISA allowance allows. GIAs can also be used to invest in assets that are not eligible for ISAs, such as overseas shares.
There are no restrictions on how much money you can invest in a GIA. You can also withdraw money from a GIA at any time, although you may have to pay tax on any capital gains.
Taxation: Contributions made to a GIA in the UK are made with after-tax money, meaning they have already been subject to income tax. However, once the funds are invested within the GIA, any capital gains, dividends, or interest earned may be subject to certain taxes. For example, capital gains tax (CGT) may apply when you sell an investment for a profit. Dividends received within a GIA are subject to dividend tax, and interest earned may be subject to income tax.
GIAs provide easy access to funds. There are no penalties or restrictions on withdrawals, allowing investors to access their funds whenever needed. This makes them suitable for both short-term and long-term investment goals.
GIAs may be subject to inheritance tax (IHT) upon the investor’s death, depending on the value of the estate and other factors. It’s important to consider the potential impact of IHT when estate planning.
Lexo is the trading name of Lexington Wealth Management Ltd. (registered number 05503144). Lexington Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority (No. 440099).
With investment, your capital is at risk. The value of your portfolio with Lexo can go down as well as up and you may get back less than you invest. It is important that you understand the risks. Lexo aims to provide information to help you make your own informed decision. It does not provide personal advice based on your circumstances. If you are unsure, please seek personal advice from Lexington Wealth.
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