Hi All,
You're probably sick to death of this so feel free to ignore it if you are. I posted here recently about my intent to invest some money in the markets. I was hesitant to invest in ETF's due to the harsh tax treatment associated with them. So my intention was to purchase one or two broad ranging investment trusts and maybe some Berk-B shares.
I have a broker that manages a portfolio for me also and I put my plan to him. I got a lot of useful info back, however, it's the part around the taxation of ETF's that I am double checking. Regarding the taxation of ETF's, this is what I received back
"Investment Trusts and US ETFs are CGT tax treated. No reason to avoid US ETFs. Outside of a pension structure, European ETFs have less favorable tax treatment....
To access US ETF's you will have to declare yourself a professional investor. Give me a call on that this afternoon or tomorrow."
Is that true? Is it as simple as starting an account with Interactive Brokers, declaring myself a professional investor, then I have my pick of US ETF's which are treated as CGT? Would you be confident doing that?
Just incase any one finds it interesting, I will include his opinion on buying F&C IT below
"In regards to your question, no I would not invest in this investment trust. I'm not a big fan of big broad diversified exposure right now because my belief is that those exposures have too much concentrated risk in areas of the markets that I would deem too expensive and risky at this time. If I were going to buy a diversified exposure right now, I would probably buy an MSCI World ex-US ETF or Investment Trust that was highly correlated to that. "
You're probably sick to death of this so feel free to ignore it if you are. I posted here recently about my intent to invest some money in the markets. I was hesitant to invest in ETF's due to the harsh tax treatment associated with them. So my intention was to purchase one or two broad ranging investment trusts and maybe some Berk-B shares.
I have a broker that manages a portfolio for me also and I put my plan to him. I got a lot of useful info back, however, it's the part around the taxation of ETF's that I am double checking. Regarding the taxation of ETF's, this is what I received back
"Investment Trusts and US ETFs are CGT tax treated. No reason to avoid US ETFs. Outside of a pension structure, European ETFs have less favorable tax treatment....
To access US ETF's you will have to declare yourself a professional investor. Give me a call on that this afternoon or tomorrow."
Is that true? Is it as simple as starting an account with Interactive Brokers, declaring myself a professional investor, then I have my pick of US ETF's which are treated as CGT? Would you be confident doing that?
Just incase any one finds it interesting, I will include his opinion on buying F&C IT below
"In regards to your question, no I would not invest in this investment trust. I'm not a big fan of big broad diversified exposure right now because my belief is that those exposures have too much concentrated risk in areas of the markets that I would deem too expensive and risky at this time. If I were going to buy a diversified exposure right now, I would probably buy an MSCI World ex-US ETF or Investment Trust that was highly correlated to that. "