Brendan Burgess
Founder
- Messages
- 52,184
Corncrake said:
To an investor dealing in any kind of half-reasonable size (like yourself!) gross roll-up must make investing through a unit-linked fund/unit trust a more attractive option.Admittedly at a price, the pooled approach provides tax efficiency,avoids dealing with dividends,and most importantly, provides diversification.It also saves small forests in terms of the paperwork which goes out to investors !
Sir Ivor said:
The GRU versus Direct is a horse which has been flogged to death. It is not the size of the investment that matters but the frequency of trading. If one is a frequent trader (and making capital gains) better with GRU. If one buys and holds better direct - to get the advantage of indexation and 20% CGT - note that Buy & Hold implicitly "rolls up" any gains.
Corncrake said:
Sir Ivor is (almost) correct about 'buy& hold' being implicitly gross roll-up. Dividends are once again a significant part of the return to investors and these are taxable at the investor's marginal tax rate.This is currently a good deal higher than the exit tax and is also more immediate.
Whether GRU is better or worse is a function of many things,and Sir Ivor is correct to mention activity as one of them.Sorry if I have gone over ground previously covered,but dividends are back in fashion !
Sir Ivor said:
Let's see now, Corncrake.
Irish Life Scope funds, for example, 1.65% management charge, dividend yield, say, 2% and the little left over subject to exit tax.
I'll pay 42% tax on direct holdings any day.
To an investor dealing in any kind of half-reasonable size (like yourself!) gross roll-up must make investing through a unit-linked fund/unit trust a more attractive option.Admittedly at a price, the pooled approach provides tax efficiency,avoids dealing with dividends,and most importantly, provides diversification.It also saves small forests in terms of the paperwork which goes out to investors !
Sir Ivor said:
The GRU versus Direct is a horse which has been flogged to death. It is not the size of the investment that matters but the frequency of trading. If one is a frequent trader (and making capital gains) better with GRU. If one buys and holds better direct - to get the advantage of indexation and 20% CGT - note that Buy & Hold implicitly "rolls up" any gains.
Corncrake said:
Sir Ivor is (almost) correct about 'buy& hold' being implicitly gross roll-up. Dividends are once again a significant part of the return to investors and these are taxable at the investor's marginal tax rate.This is currently a good deal higher than the exit tax and is also more immediate.
Whether GRU is better or worse is a function of many things,and Sir Ivor is correct to mention activity as one of them.Sorry if I have gone over ground previously covered,but dividends are back in fashion !
Sir Ivor said:
Let's see now, Corncrake.
Irish Life Scope funds, for example, 1.65% management charge, dividend yield, say, 2% and the little left over subject to exit tax.
I'll pay 42% tax on direct holdings any day.