Capital gain on my GIA.
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What a lovely time of year. NOT!!
Please forgive my lack of understanding of what may be blindingly obvious and clearly I'm only bothering to ask a couple of questions due to the excellent efforts of Cobens! Thanks Team!
1/ I downloaded my GIA report for 24/25 and it's showing a Gain which needs to be reported and the appropriate tax amount then paid. Given that I took £0 out of my GIA during that period am I correct in assuming it's the 'behind-the-scenes' re-balancing that's triggered the CGT liability?
2/ I've not utilised any of my ISA allowance for a few years. Is there a way, during your re-balancing of my GIA, that my ISA allowance could be utilised?
This may be the stupidest question of the year so far and for that I apologise. I'm sure I'm not the only one walking around cross-eyed during tax-return season!
Ta,
R
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Hi Rodders,
Correct. Rebalancing can trigger gains and losses and if held within a GIA, are subject to CGT (allowances still apply-£3k)
- Utilising your ISA allowance would down to the individual.
Let us know if we Cana assist further
Regards
Adam
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Thanks Adam.
To help my understanding of how it all works, a couple more questions -
1/ When Rebalancing takes place on my GIA, am I correct in thinking that you're selling shares that go briefly to a 'cash' status before further re-investment?
2/ If the above is correct, could, during that brief 'cash' status period, funds be moved to my ISA to be be re-invested from there?
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Rebalancing involves buying and selling with matched settlement so it's not as though you get 'settled cash'. The GIA and ISA are defined wrappers so you need to move funds out of one and into another-even if they hold the same exact assets. To effect a move the cash needs to move out of ones GIA account(literally) and be deposited into the ISA account. This involves the custodian wiring funds to your bank account(wrapper acc) and then onto the new wrapper. If you were allowed to switch across in an instant, blurring the transaction trail, it would be difficult for the tax man to work out if you owed them any CGT
