Exchange Traded Funds (ETFs) are a low cost and increasingly popular way of investing in the markets but potentially come with a tax sting unless they have reporting or distributor status. Gains are subject to income tax which for a higher rate tax payer means paying 40% or even 50% tax rather than the new maximum capital gains tax rate of 28%. Before investing better to seek independent advice from a financial advisor or investment advisor who understands ETFs
Investment Planning – The ETF Tax Sting
Exchange Traded Funds (ETFs) are a low cost and increasingly popular way of investing in the markets but potentially come with a tax sting unless they have reporting or distributor status. Gains are subject to income tax which for a higher rate tax payer means paying 40% or even 50% tax rather than the new maximum capital gains tax rate of 28%. Before investing better to seek independent advice from a financial advisor or investment advisor who understands ETFs