I think you’re probably just making life difficult for yourself doing this. You’ll likely end up having to do dividend tax returns annually, maybe CGT too if you’re going to try and use the annual CGT allowance. Then you’ll probably need to rebalance those stocks too, across multiple accounts. Would you consider choosing a single ETF (World or US, whatever is your poison) and stick to that? No tax returns for 8 years, no rebalancing, no temptation to ‘daytrade’ the stocks if they do well/poorly.accumulating ETFs and stocks
FWIW I’d suggest one is more than enough to be very well diversified, again in the interests of simplification.to make life easier I will invest mainly in a few well diversified accumulating ETFs
I know that's an option but you will never get the same diversification that you would have with a ETF. You would need to have thousands of shares, then it really gets complicated to keep track of income and CGT generated by a high number of stocksWhy not buy a diversified portfolio of equities?
Better tax treatment for starters.
You don't need thousands of shares to get the same effective diversification.I know that's an option but you will never get the same diversification that you would have with a ETF. You would need to have thousands of shares, then it really gets complicated to keep track of income and CGT generated by a high number of stocks
I suppose the question might be why have more? The iShares MSCI World ETF is diversified over 1500 companies, will investing in an additional ETF achieve much, unless you want to dabble in the likes of the BRIC economies (in whichcase that's different). I guess I'm just making the point that coming from the world of buying/selling shares, people are tempted to think they need to have a basket of ETFs in their portfolio like World, S&P and EU ETFs. Wasn't sure if that's what you were getting at. On the more trivial side, it's a little easier to cast your eye over the price of a single ETF every month or two if you're interested in tracking it, your spreadsheet to track purchases will be a little easier to build and maybe somebody else can comment on the profit/losses side but my understanding is that you can only offset the losses in a single ETF against gains in that same ETF (?).Thanks Zenith but I don't understand where is the complication with having a few accumulating ETFs vs a single one
What about realised losses and gains within the same transaction, are they offsettable?You can not set realised losses in an ETF against future gains in that ETF
I help my parents with their tax return. It’s dead easy because their investment advisers produce idiot proof tax packs. They have around 50 equities which as I understand it is plenty of diversification.I know that's an option but you will never get the same diversification that you would have with a ETF. You would need to have thousands of shares, then it really gets complicated to keep track of income and CGT generated by a high number of stocks
Sorry what I meant was lets say you've bought a single ETF a number of times over a year (so no DD yet). You now sell all of them in one go, some are in a losing position, some are up. I assume you add up all the profits and subtract the losses to get to the profit that Exit Tax needs to be paid on?What do you mean by "within the same transaction" ?
A share in a ETF is Sold or Bought?
Losses cannot be set against gains for Exit Tax.Sorry what I meant was lets say you've bought a single ETF a number of times over a year (so no DD yet). You now sell all of them in one go, some are in a losing position, some are up. I assume you add up all the profits and subtract the losses to get to the profit that Exit Tax needs to be paid on?
Even when it's the same ETF?Losses cannot be set against gains for Exit Tax.
Where a loss arises on the disposal of a material interest in an offshore fund, no CGTor other loss relief is available [s.747E(3)]
That's my understanding and seems to be supported by @jpd 's link.Even when it's the same ETF?
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