Comments on: How Property Income Distributions (PIDs) are taxed http://monevator.com/2009/11/12/how-property-income-distributions-pids-are-taxed/ Make more money, invest profitably, retire early Sat, 11 Feb 2012 01:13:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: The Investor http://monevator.com/2009/11/12/how-property-income-distributions-pids-are-taxed/comment-page-1/#comment-15264 The Investor Sun, 15 Nov 2009 10:13:43 +0000 http://monevator.com/?p=2950#comment-15264 That looks about right to me Faustus, good comment. Cash should be near the top in theory, too, especially as CGT isn't a problem for most people. I'll probably do a post on this at some time! That looks about right to me Faustus, good comment.

Cash should be near the top in theory, too, especially as CGT isn’t a problem for most people. I’ll probably do a post on this at some time!

]]> By: Faustus http://monevator.com/2009/11/12/how-property-income-distributions-pids-are-taxed/comment-page-1/#comment-15174 Faustus Fri, 13 Nov 2009 23:44:31 +0000 http://monevator.com/?p=2950#comment-15174 This is really helpful - and brings up the question of which assets should be used in an ISA shelter and which (once the limit has been used up) should remain outside. Presumably, given the tax regime, a scale of priority may look like the following for a taxpayer if one focuses on income (with most advantageous to keep in an ISA at top): REITs Bonds/Gilts Shares for Growth (expecting high capital gains) Shares for Income (expecting high dividend income) ETF Index Trackers Unit Trusts/OEIC Funds Commodities/ETCs Of course, the distribution is different if one were to focus on sheltering from capital gains, but I assume many readers will be building a fund for future income rather than intending to sell off large swathes of capital. This is really helpful – and brings up the question of which assets should be used in an ISA shelter and which (once the limit has been used up) should remain outside.

Presumably, given the tax regime, a scale of priority may look like the following for a taxpayer if one focuses on income (with most advantageous to keep in an ISA at top):

REITs
Bonds/Gilts
Shares for Growth (expecting high capital gains)
Shares for Income (expecting high dividend income)
ETF Index Trackers
Unit Trusts/OEIC Funds
Commodities/ETCs

Of course, the distribution is different if one were to focus on sheltering from capital gains, but I assume many readers will be building a fund for future income rather than intending to sell off large swathes of capital.

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