Most types of investment involve some form of risk. A GIA gives you access to a wide variety of investments however their value and the value of any income generated from them may fall as well as rise. We cannot therefore guarantee you will get back the amount you originally invested when you cash in your GIA. Your GIA may also be worth less than forecast for the following key reasons:
Choice of investments
If the investments in your GIA do not match your attitude to risk they may not perform in line with your investment expectations.
Past performance is not a guide to future performance and some investments need to be held for the longer-term to achieve a return.
Charges and withdrawals
The effect of charges may be higher than illustrated. If you switch to an investment strategy with higher charges than those originally illustrated, or if annual management costs increase within the investment portfolio you initially chose, the effect of charges will change.
If you increase the amount you regularly withdraw, the value of your GIA may be less than originally estimated.
If you transfer your existing GIA to the Signia Invest Platform your provider may not support the re-registration of your investments therefore they may need to be sold first. In this instance, the cash would be transferred to your GIA.
If your investments need to be sold first and the proceeds transferred in cash, please be aware that you may lose out on income and capital growth while your money is not invested in the market during the transfer.
Additional charges may apply when certain investments are repurchased in the GIA.
You will not have access to your GIA until the transfer is complete.
You may need to declare income and any capital gains from your investments on your tax return.
Any sales executed whether to pay charges, realign your portfolio or raise money for withdrawal may be subject to capital gains tax.
Dividends and income distributed from UK domiciled funds as interest, plus interest on cash deposits is paid gross. You may be liable for additional tax depending on your personal tax status.
Each year you will receive a consolidated tax certificate with details of all distributions and capital gains made from the previous year.
Tax rules could change in the future.
Cancelling your GIA
If you decide to cancel your GIA within the first 14 days, you may get back less than you invested if its value falls in the meantime.