If the account grows in value either because the investments pay you dividends or interest then, in both cases, this income will be taxed. We use total return indices for the asset classes. We estimated the average dividend and interest as percentages of the total returns over a period of 100 years. In years where the portfolio performance is positive, the total return is then broken down into capital gains, dividend, and interest.

The Capital Gains tax-free allowance we use is: £12,300. There are two tax rates for the capital gains: 10% for basic taxpayers and 20% for any other tax band. In both net & gross versions, CGT is treated as gross. The user can select for which GIA accounts the capital gains allowance will be used:

If all the accounts are selected, then all GIA accounts that use CGT allowance share it evenly (per owner). Dividends and Interest are reinvested, and the taxes are deducted from the account balance.

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