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investing in index tracker outside of pension plan

  • 11-01-2017 7:36pm
    #1
    Jairus
    Registered Users, Registered Users 2 Posts: 15 ✭


    Hello

    I have joined my company's pension plan in which I only have access to actively managed funds. As a way of diversification I want to invest into the requisite degiro VOO tracker that has been amused to on here. My question is, would a situation arise where I would need to disclose the fact I'm in an index tracker and would this be a conflict of interests?

    I obviously think the internal fund managers can do an ok job but beating the benchmark net of fees is extremely difficult so I need the best of both worlds.

    Thank you


Comments

  • #2
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭topper_harley2


    Disclose it to whom? Your company? Of course not. The only people interested in your taxable investments are the Revenue. Loads on information on here already about how to deal with them regarding CGT, declaring dividends, exit tax for UCIT funds etc.

    If you have an SVR mortgage you're better off overpaying this than investing in VOO (or any other stock/fund), in my opinion.


  • #3
    Jairus
    Registered Users, Registered Users 2 Posts: 15 ✭Jairus


    topper_harley2 wrote: »
    Disclose it to whom? Your company? Of course not. The only people interested in your taxable investments are the Revenue. Loads on information on here already about how to deal with them regarding CGT, declaring dividends, exit tax for UCIT funds etc.

    If you have an SVR mortgage you're better off overpaying this than investing in VOO (or any other stock/fund), in my opinion.

    Hi Topper

    Yes sorry I meant the revenue in terms of additional investments. I was a bit confused if I needed to disclose it even tho I won't be making any withdrawals. I will check the links mentioned

    Thanks


  • #4
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭topper_harley2


    There is no "conflict of interest" though. Revenue dont care that you have pension plus ETFs or about performance or fund managers, or anything related with your occupational pension.

    If its a non UCITs fund you are buying (like VOO), you need to inform them of purchase (offshore fund purchase). AFAIK you do that on form 11 at the end of the year of purchase. Hence, if you buy a US domiciled ETF today, they need to know about it in tax return for 2017. If you buy more next year, they need to know about that, again form 11 in 2018 return.
    If you never make a withdrawl, but get dividends, they need to know about that. If you do eventually sell them, they need to know about that too.
    You dont need to tell them about UCIT ETF purchases, but they are awful from a tax perspective so I would suggest not buying those anyway.


  • #5
    Jairus
    Registered Users, Registered Users 2 Posts: 15 ✭Jairus


    topper_harley2 wrote: »
    There is no "conflict of interest" though. Revenue dont care that you have pension plus ETFs or about performance or fund managers, or anything related with your occupational pension.

    If its a non UCITs fund you are buying (like VOO), you need to inform them of purchase (offshore fund purchase). AFAIK you do that on form 11 at the end of the year of purchase. Hence, if you buy a US domiciled ETF today, they need to know about it in tax return for 2017. If you buy more next year, they need to know about that, again form 11 in 2018 return.
    If you never make a withdrawl, but get dividends, they need to know about that. If you do eventually sell them, they need to know about that too.
    You dont need to tell them about UCIT ETF purchases, but they are awful from a tax perspective so I would suggest not buying those anyway.

    Cheers Topper that makes sense now. I didn't want to go to the fund managers in work and start asking them about access to index trackers for obvious reasons. I'm not going near UCIT ETF's. Thanks for your help


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