A GIA, or General Investment Account, is an account which allows you to hold investments outside of tax wrappers, such as ISAs or pensions. Unlike ISAs, there is no limit to how much you can invest in a GIA. They are therefore, ideal for those who have used up their ISA allowance and who have more to invest. There are no restrictions on when you can access money invested in a GIA, although you should generally look to invest for at least five years.

Tax implications

Any dividends received from your GIA investments that exceed your annual, tax-free dividend allowance or available personal allowance will be subject to income tax. The rate of income tax payable on dividend income depends on the overall level of your income. Income tax may be payable whether you choose to receive dividend income or to reinvest it.

If a gain is made as a result of selling, or otherwise disposing of investments within your GIA and the amount of the gain exceeds your available capital gains tax allowance, capital gains tax will be payable. The rate of capital gains tax you may pay depends on the level of your income.

You will normally need to complete a tax return if any tax is due.

Investments you hold within a GIA will form part of your estate when you die and may therefore be subject to Inheritance Tax.