Pumpkin Whiskey
New Member
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Hi all. Just looking for advice on Investment Trusts and ETF's in general.
Is it still benefit to buy ETF's over IT's today? It seems the fee's are quite a bit lower, as mentioned here. However, there is the 41% exit tax (and the 8 year deemed disposal rule).
Whereas with IT's it looks like the fee's are larger and you'd be subject to FX fees. You also have have the NAV premium/discount thrown in to the picture. You only pay CGT of 33% on gains, and no deemed-disposal. However, from what I have read that the risks are higher with these actively managed funds compared to the passively managed ETF's. It also looks like most of the IT's are paying dividends too which would be subject to 52% tax.
I find the calculation of tax with ETF's due to deemed disposal starts to get quite complex if you buy frequency (e.g. every month) once you go bast the 8-year mark. I understand some probably have a nice spreadsheet to make this somewhat manageable. If you have any templates to share, please let me know. Also due to th fact you need to pay tax due to the deemed disposal, you may not have enough cash at hand to do this and may have to sell some of your shares, which to me would complicate tracking your ETF's and tax obligations further?
Does anyone know any analysis or compairsons between ETF's and IT's that track S&P 500 and FTSE 100 and if there is a great difference when it comes to typical fees and exit-tax/CGT?
Generally I am looking to grow savings for use in the 7-15 year time range. I am 30 years away from retirement and am contributing to a pension. I have not maxed my pension contributions, but am contributing AVC's in addition to my my regular own and employer contributions and have them in high grown funds.
Is it still benefit to buy ETF's over IT's today? It seems the fee's are quite a bit lower, as mentioned here. However, there is the 41% exit tax (and the 8 year deemed disposal rule).
Whereas with IT's it looks like the fee's are larger and you'd be subject to FX fees. You also have have the NAV premium/discount thrown in to the picture. You only pay CGT of 33% on gains, and no deemed-disposal. However, from what I have read that the risks are higher with these actively managed funds compared to the passively managed ETF's. It also looks like most of the IT's are paying dividends too which would be subject to 52% tax.
I find the calculation of tax with ETF's due to deemed disposal starts to get quite complex if you buy frequency (e.g. every month) once you go bast the 8-year mark. I understand some probably have a nice spreadsheet to make this somewhat manageable. If you have any templates to share, please let me know. Also due to th fact you need to pay tax due to the deemed disposal, you may not have enough cash at hand to do this and may have to sell some of your shares, which to me would complicate tracking your ETF's and tax obligations further?
Does anyone know any analysis or compairsons between ETF's and IT's that track S&P 500 and FTSE 100 and if there is a great difference when it comes to typical fees and exit-tax/CGT?
Generally I am looking to grow savings for use in the 7-15 year time range. I am 30 years away from retirement and am contributing to a pension. I have not maxed my pension contributions, but am contributing AVC's in addition to my my regular own and employer contributions and have them in high grown funds.