P
pfreh
Guest
Hi,
I'm thinking about investing in one of rabo directs online investment funds. I was wondering if anyone could clairfy the following text from their website?
By investing through these Funds, you only pay tax on the realisation of your investment. The tax rate applicable is the standard rate of tax (currently 20 per cent) plus 3 per cent on any gains made on units in the funds.
You should note that this rate will apply only if you have included details of your gains correctly in your return of income made to your Inspector of Taxes; otherwise, the tax rate applicable will be your marginal rate of tax. This compares favourably with investing, for example, directly in equities.
My take on this is that an investment fund is a good option from a tax perpective since you only pay tax at the standard rate even if your income exceeds the 32k cut off? Does it also mean that if you mess up your tax return you will then have to pay the 42%?
If I was to buy into one of these funds tomorrow and didn't want to sell it for a few years do I have to do let the revenue know up front every year in the mean time or something?
Thanks a million, appreciate your help.
Paul.
I'm thinking about investing in one of rabo directs online investment funds. I was wondering if anyone could clairfy the following text from their website?
By investing through these Funds, you only pay tax on the realisation of your investment. The tax rate applicable is the standard rate of tax (currently 20 per cent) plus 3 per cent on any gains made on units in the funds.
You should note that this rate will apply only if you have included details of your gains correctly in your return of income made to your Inspector of Taxes; otherwise, the tax rate applicable will be your marginal rate of tax. This compares favourably with investing, for example, directly in equities.
My take on this is that an investment fund is a good option from a tax perpective since you only pay tax at the standard rate even if your income exceeds the 32k cut off? Does it also mean that if you mess up your tax return you will then have to pay the 42%?
If I was to buy into one of these funds tomorrow and didn't want to sell it for a few years do I have to do let the revenue know up front every year in the mean time or something?
Thanks a million, appreciate your help.
Paul.