Ask Money

Ask Money: what are the CGT rules for UK non-residents?

For tax purposes, I am resident in Australia, where I have been living since 1974. I have some M&G investment funds that I have held in one form or another since 1983. If I were to sell these shares, would I be subject to CGT and/or withholding tax, and how much would I have to pay? Would M&G act on behalf of HMRC and retain the tax payable, or would it deposit the gross proceeds from this sale in my UK bank account?
Joseph Zekan, by email

Ask Money: is a lack of diversity in investing always a danger?

March 2, 2020

We often read that it makes good sense to maintain a diverse portfolio. Indeed, it does, but I am guilty of not falling in line on this.

Now that I am in my 80s, my main interest is to create income rather than growth. Hence, I hold 10 of the 12 renewable energy investment trusts listed in Money Observer, which form about 65% of my total portfolio.

They are all paying dividends in excess of 5%, and only one of them, US Solar Fund, is showing a capital loss at the moment. My initial investment in Bluefield Solar is now up by 37%.

Ask Money: how about cautious investment ideas?

February 3, 2020

I am nearly 74 years old. On retirement, I adopted the traditional advice to reduce equity investments in favour of (‘more secure’) fixed interest, having fewer years to make up any major stock market losses. However, this advice is now resulting in the erosion of my capital rather than its preservation, due to the extraordinary policies prevailing, with no end in sight. I am therefore forced to go back into the stock market and indeed still have significant cash awaiting investment, but I am unsure how to reduce my risk.

Ask Money: can you help solve my closed-ended ethical dilemmas?

January 29, 2020

Like many of your readers, I have been progressively moving my (modest) Isa investments into ‘ethical’, socially beneficial and sustainable portfolios. In selecting these, the green symbol used in your unit trust and open-ended fund statistics section has been very useful.

The increasing coverage of such funds in articles by Rachel Winter and others has also proved to be very informative.

How should the wind-up of LF Woodford Equity Income be treated for tax purposes?

I'm looking for guidance on how the winding up of LF Woodford Equity Income should be treated for tax purposes. I expect that this might be a subject that quite a few of your readers will also need to understand.

Let's suppose I paid 120p for some units, and I receive 60p for each of those units from the January payment, and the estimated total payments will eventually be 85p per unit. Would I, for this tax year:

Ask Money: could you enlighten me on the lifetime allowance?

January 6, 2020

I am a regular subscriber to Money Observer and have been for a number of years. I find your information and factual data extremely helpful.

I have a Sipp, and I supplement the state pension and some other income with annual small uncrystallised lump-sum payments (UFPLS), typically of 3-4% a year, usually with the aim of using up my full basic-rate tax allowance. I think I understand the situation regarding the lifetime allowance for such withdrawals.

Ask Money: should I play a Share Sleuth imitation game?

November 29, 2019

I'm impressed with Richard Beddard's work and looking to invest in the Share Sleuth portfolio for the next 10 years. I would be very grateful if he could give me his view of the best way to get started. For example, should I simply buy all 25 shares in one go, or buy two shares a month over the next 12 months, and is timing an issue?
Name and email supplied

Ask Money: what about an ethical ranking for investment trusts?

November 25, 2019

I like the notion of ethical investing and note your portfolio, but I prefer to invest in investment trusts. That said, while I can see which of my trusts invest in oil or tobacco companies, the rest of the picture is rather opaque. Do you have any sort of ranking for the ethical status of trusts, or a facility to ‘look through’ the investments held in each trust and rank them ethically?
Andrew Johnston, by email

Ask Money: is Alexander Darwall pushing his luck with Jupiter?

November 15, 2019

You reported recently on proposed changes in the management of the Jupiter European fund and its sister investment trust Jupiter European Opportunities (JEO), both currently run by ‘star’ manager Alexander Darwall, who is now planning to set up his own fund management company. For many years Jupiter European was the largest holding in my portfolio, and a smaller holding in JEO was the next largest.