Open a general investment account

If you are 18 or over and a UK tax resident, you can open a general investment account.

Yes, you can withdraw money from a general investment account whenever you choose to. 

To withdraw money from your ii Trading Account, log in to your online account and select cash & transfers > withdraw/transfer cash from the menu. Then select bank transfer and follow the on screen instructions.  

Yes, you can hold cash in a general investment account. However, you will not receive interest on your cash in most general investment accounts. 

While it is often a good idea to keep a small cash balance to pay for any fees and charges, it may be better to hold your cash in a savings account or cash ISA. 

You can transfer cash and investments from a general investment account to an ISA, but the transfer will count towards your £20,000 ISA annual allowance. 

To transfer investments you will have to make a Bed & ISA transfer. This is where your investments are sold in your GIA, transferred in cash and then repurchased in your ISA account. 

Please note that trading fees may apply to your transfer. Also, that you may not be able to repurchase the same number of shares that you had in GIA.

You can build an ethical investment portfolio in a general investment account by choosing investments which match your values and investment goals. 

If you need help choosing your investments, you can look at the ACE 40 rated list of ethical investments. ACE stands for Avoids, Considers and Embraces to describe different ethical investment styles.

You can transfer an existing general investment account to an ii Trading Account. You will need to have opened a Trading Account before you can start your transfer. 

Also, if you want to benefit from having a Stocks and Shares ISA and a Junior ISA included for no extra monthly cost. 

You can either choose to transfer your existing investments (“in-specie” transfer) or to transfer in cash. 

Yes, dividends and investment gains are liable for tax in a trading account or a general investment account. 

You have tax-free annual allowances for income earned from dividends and investment gains. The dividends and investment gains you earn from general investing count towards these allowances. Any money over the allowance is taxed. 

In contrast, money you earn from dividends and investment gains in an ISA or a pension is tax-free and does not count towards the allowance. 

Currently, you can earn £2,000 in tax-free dividend income in a tax year. Any dividend income over £2,000 is taxed depending on your tax-rate. Basic rate taxpayers pay 7.5%, higher rate taxpayers pay 32.5% and additional rate taxpayers pay 38.1%.

Investment gains in general investment accounts are subject to Capital Gains Tax. Each year, you can make £12,300 of profit on your investments without paying tax. For any gains you make over £12,300 in a tax year, you will pay 10% tax if you are a basic rate taxpayer and 20% tax if you are a higher rate taxpayer.