Frequently Asked Questions about General Investment Accounts (GIAs)

4 min read

Here are 20 frequently asked questions about General Investment Accounts (GIAs) to help clarify how they work, their tax implications, and their benefits

1. What is a General Investment Account (GIA)?

A GIA is a flexible investment account that allows you to buy and sell assets without the tax-free benefits of an ISA or pension. It has no contribution limits, making it ideal for those who have maxed out their ISA and pension allowances

2. How does a GIA differ from an ISA

Unlike an ISA, a GIA does not offer tax-free growth. Any profits made from investments in a GIA may be subject to capital gains tax and dividend tax

3. What can I invest in with a GIA?

You can invest in:
✅ Stocks & Shares – Own a portion of publicly traded companies.
✅ Bonds & Funds – Invest in diversified portfolios or government-backed securities.
✅ Exchange-Traded Funds (ETFs) – Passive investments that track market indices.
✅ Real Estate Investment Trusts (REITs) – Property-based investments

4. Is there a limit on how much I can invest in a GIA?

No, GIAs have no contribution limits, unlike ISAs, which have a £20,000 annual cap

5. Do I have to pay tax on profits from a GIA

Yes, profits from a GIA are subject to capital gains tax (CGT) and dividend tax

6. What is the capital gains tax rate for GIAs?

For the 2025/26 tax year, the Annual Exempt Amount is £3,000. Gains above this threshold are taxed at:
✔ 18% for basic-rate taxpayers
✔ 24% for higher-rate taxpayers

7. How are dividends taxed in a GIA?

The dividend allowance for 2025/26 is £500. Any dividends above this amount are taxed at:
✔ 8.75% for basic-rate taxpayers
✔ 33.75% for higher-rate taxpayers
✔ 39.35% for additional-rate taxpayers

8. Can I withdraw money from a GIA at any time?

Yes! Unlike pensions or ISAs, GIAs allow unrestricted withdrawals at any time.

9. Who should use a GIA?

A GIA is best suited for:
✅ High earners who have maxed out their ISA and pension allowances.
✅ Experienced investors who understand tax implications.
✅ Those seeking unlimited investment flexibility.

10. How do I open a GIA?

Opening a GIA is straightforward and can be done through investment platforms, banks, or financial institutions. You’ll need:
✔ Personal details (including your National Insurance number).
✔ Investment choices (stocks, funds, ETFs, etc.).
✔ Deposit funds (lump sum or regular contributions)

11. What are the risks of investing in a GIA?

⚠ Market Volatility – Investments can fluctuate in value.
⚠ Tax Liabilities – Profits are subject to capital gains and dividend tax.
⚠ No Government Incentives – Unlike pensions or LISAs, GIAs do not offer bonuses or tax relief

12. Can I transfer my GIA to an ISA?

Yes, but you’ll need to sell your investments first, which may trigger capital gains tax before reinvesting in an ISA.

13. What happens to my GIA if I move abroad?

You can keep your GIA, but tax rules may change depending on your new country of residence.

14. Can I open a GIA for someone else?

No, GIAs must be opened in your own name. However, you can gift money to someone else to invest.

15. What happens to my GIA if I die?

Your GIA becomes part of your estate and may be subject to inheritance tax.

16. Are GIAs protected if my provider goes bankrupt?

Yes, GIAs are covered under the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per provider.

18. What fees are associated with GIAs?

✔ Account fees – Some providers charge a flat fee or percentage-based fee.
✔ Dealing commissions – Fees for buying and selling investments.
✔ Fund management costs – If investing in managed funds.

19. Can I use a GIA for retirement savings?

Yes, but pensions and ISAs are more tax-efficient for long-term retirement planning.

20. What are the best GIA providers in the UK?

✔ Hargreaves Lansdown – Offers a wide range of investments with strong research tools.
✔ AJ Bell – Low-cost platform with diverse investment options.
✔ Interactive Investor – Fixed-fee structure, ideal for larger portfolios.
✔ Vanguard – Great for passive investing with low-cost funds.