Guide: Fund Investing


If your OEIC is not within a Personal Equity Plan (PEP) or Individual Savings Account (ISA) any income that you receive or profit that you make may be subject to tax.

The two taxes that are applicable are Income Tax and Capital Gains Tax:

Capital Gains Tax (CGT)

This is payable on any gains you make from your investments ie if you started with an investment of £10,000 and that has grown to £20,000, capital gains tax is due on the £10,000 gain.

Although you will be liable to Capital Gains Tax when you cash in your investment, you will not have to pay any tax if the total realised gains you make in that tax year from all your investments are within your annual Capital Gains Tax allowance (currently £9,600). Furthermore, Taper Relief will reduce the amount of tax you would have to pay on any investments held for more than three years.

Income Tax

Income from OEICs is liable to tax but tax is already deducted before the income is paid out so basic rate taxpayers will have nothing further to pay. Only higher rate taxpayers are liable for extra income tax.

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