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Investment funds advice - zurich - deemed disposal etc

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  • 28-03-2021 5:08pm
    #1
    BishopBrennen
    Registered Users Posts: 56 ✭✭


    I'm looking to invest in an Investment fund as I have some cash and savings accounts interest are 0%.

    I'm reading up on some of them and am reading conflicting info regarding the their tax and would appreciate some advice before I sign up.

    Are all Investment funds subject to 41% exit tax?
    Are all Investment funds subject to 8yr deemed disposal tax aswell as 41% exit tax?
    I thought if you purchased an Investment fund through a broker or like Zurich direct that these weren't subject to deemed disposal tax every 8 yrs. Is this not the case?
    Do all Investment fund suppliers do the tax for you automatically?

    I know that with ETF's purchased in the US that they are subject to 33% CGT instead of the 41% exit tax but that you can't purchase these directly now via online trading platforms if you are a Ireland / Euro resident, which I am. But can you purchase US ETF's through a broker and get the 3% CGT that way? Or is the only way you can purchase them through a broker is via an Investment fund?

    I'm considering some of the Zurich funds such as the Prisma5 etc and the Zurich International Equity Fund, are these wise for long term, I'm planning 12 yrs minimum.

    Are there any others I should consider and has anyone got any tips for getting a better annual charge of 1.25%? All advice welcome as this is new to me. :)


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  • Options
    #2
    [Deleted User]
    Posts: 281 ✭✭ [Deleted User]


    BishopBrennen wrote: »
    Are all Investment funds subject to 41% exit tax?
    Are all Investment funds subject to 8yr deemed disposal tax aswell as 41% exit tax?
    I thought if you purchased an Investment fund through a broker or like Zurich direct that these weren't subject to deemed disposal tax every 8 yrs. Is this not the case?
    Do all Investment fund suppliers do the tax for you automatically?

    Are there any others I should consider and has anyone got any tips for getting a better annual charge of 1.25%? All advice welcome as this is new to me. :)

    Yes.
    Yes.
    No.
    Yes.

    There are lower AMCs available for single premium Zurich products, on an execution only basis, via some discount brokers eg 0.65%/0.75% - with cost of 1% Government Levy covered via 101% allocation.


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    #3
    dkav9
    Registered Users Posts: 46 ✭dkav9


    All of the zurich prisma funds have done pretty well over the years. That's not an indication of how they'll do in the future though.

    I am in a savings plan with them, and they sort all of the tax for you. I'm not sure whether I need to file anything with the revenue though


  • Options
    #4
    [Deleted User]
    Posts: 281 ✭✭ [Deleted User]


    dkav9 wrote: »
    I'm not sure whether I need to file anything with the revenue though

    No, you don't.

    If you cash-in before the deemed disposal date the liability (if any) will be calculated, deducted and paid to Revenue. This information will be on the correspondence you receive.

    On the 8th anniversary (and any future deemed disposdal dates), the tax is deducted and sent to Revenue and you get confirmation of this.

    If you log in to your account with Zurich Life you can see the tax liability at any point in the term of the contract.


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