How is a general investment account (GIA) taxed in the UK?

Full answer

A general investment account (GIA) is an unwrapped dealing account, so it sits fully inside the normal tax system - the opposite of an ISA, where growth and income are tax-free. It affects anyone who has used up their GBP 20,000 ISA allowance or who simply holds investments outside a wrapper. Three taxes can apply. First, Capital Gains Tax when you sell investments at a profit: you get the GBP 3,000 annual exempt amount for 2026/27, then pay 18% if the gain falls within your basic-rate band or 24% above it. Second, Dividend Tax on dividends from shares and equity funds: the first GBP 500 is covered by the dividend allowance, then rates of 10.75% (basic), 35.75% (higher) and 39.35% (additional) apply - all two points higher than last year. Third, Income Tax at 20%/40%/45% on interest from bonds, gilt coupons and cash, subject to your Personal Savings Allowance. Worked example: a higher-rate investor sells funds for a GBP 9,000 gain and receives GBP 2,000 in dividends. CGT: (GBP 9,000 - GBP 3,000) x 24% = GBP 1,440. Dividend Tax: (GBP 2,000 - GBP 500) x 35.75% = GBP 536.25. Total tax around GBP 1,976. A key 2026/27 point is that the CGT exempt amount is just GBP 3,000 and the dividend allowance just GBP 500, so even modest portfolios now generate reportable tax. Each tax year you can use 'Bed and ISA' - selling in the GIA and rebuying inside an ISA - to crystallise gains within the exempt amount and move future growth into the tax-free wrapper. Use the calculators below to estimate your CGT and dividend bills, and report via Self Assessment if liable.

Try the calculator