Can I take money out of a general investment account?

When you invest it’s not just about choosing the right things to put your money into. You’ll need somewhere to keep them too. Things like an ISA or pension will hold your investments and give you tax benefits too. Another option is to use a general investment account (GIA). A GIA doesn’t give you any tax perks though, so it’s important to understand any tax you may need to pay. We’ll break it down here. 

Investments can fall as well as rise, and you may get back less than you’ve paid in. 

A general investment account (GIA) lets you invest in a wide range of things, like stocks and shares, bonds, and funds. It’s basically like a bank account, but instead of holding your cash, it’s a place you keep your investments, so they can be bought and sold. 

One big advantage of GIAs is that they’re very flexible. You can invest as much you want and sell your investments when it suits you. There are no allowances to follow and no penalties to worry about. 

But unlike ISAs, where you won’t pay tax on your gains, or pensions, which offer tax relief on contributions until retirement, GIAs don’t give you any tax advantages. Selling investments for a profit within a GIA could mean you’ll owe Capital Gains Tax, and dividends you earn may be liable to tax. So, they’re often more suitable for investors who are already paying into a pension and have used all their ISA allowance. 

Using a GIA is a balance between not having your money locked away until retirement and being limited in how much you can invest, with your investments being less tax-efficient. We have more information on GIA’s here.

A GIA will give you access to a wide variety of investment options including: 

Stocks and shares

These are a slice of ownership in a company and their value can go up or down depending on the company’s performance and the overall economy. 

Bonds

These are loans issued by a company or a government. They offer a fixed income over time with the promise to pay back the original amount. They tend to be a more stable investment option.

Investment funds

Different investments can be pooled together and traded with a single price. The benefit of this is that you’re not reliant on the performance of one or two companies. Instead, you’ll have dozens in your investment which can help manage – or diversify – your risk. 

Exchange -Traded Funds (ETFs)

Like investment funds, ETFs are groups of investments, built around different indices, like the FTSE 100 or S&P 500. ETFs can be bought or sold at any time when the markets are open, while investment funds can only be traded once a day. 

Real Estate Investment Trusts (REITs)

These allow investment in a wide range of property – without needing to own it. The REIT will hold different properties and get income from rent, buying and selling.

There are a few steps to withdrawing money from a GIA:

Decide what you want to sell

Log in to your investment account and work out which of your investments you want to sell. You should be given a price immediately for investments like shares and ETFs, but if you’re selling investment funds, you’ll get a price at the end of the day. 

Your provider will sell your investments

Depending on which investments you hold, this can happen fast or take a few days.

Your sale will be settled

The money from selling your investments may show up on the balance of your account right away, but you won’t be able to withdraw the money until the sale has been settled. This completes the transfer of ownership from the seller to the buyer. Unsettled cash in your account can’t be withdrawn but you can normally use it to buy new investments. 

Withdraw your money 

The transfer to your bank account may take another 2-3 days. You should keep a note of any profits you’ve made, so you can work out if any Capital Gains Tax is due at the end of the tax year.

There are a couple of ways you can withdraw money from your GIA:

Bank transfers

This is the most common way to take money from any investments you’ve sold. It’s also the fastest, taking around 2-5 business days. 

Cheque payments

Some providers may give you the option of withdrawing your money by cheque. This is much slower though, as your cheque needs to be created and posted out to you. 

There are a few fees to look out for when you’re selling investments in your GIA. Your provider may charge you a fee as their commission and the amount can vary based on which investments you're selling. Some platforms offer commission-free trading instead, where they have a tiered fee structure, with certain account features locked behind monthly subscription fees.

If you’ve invested in markets outside the UK – for example, buying US shares - then you’ll have currency exchange fees to pay, which will depend on the current exchange rate.

The Capital Gains Tax (CGT) allowance has been shrinking over the last few years. This is the amount of profit from sales you can make each tax year before you have to pay CGT. 

Lots of things are subject to Capital Gains Tax – not just your investments. It’s best to check when you’re selling anything valuable as the total gain for the tax year is what matters. You can find out more about Capital Gains Tax. 

For the tax year 2024/2025 the CGT allowance is £3,000. You can plan the use of this allowance by splitting your sales over two tax years. By selling part before the end of the year, and part after you’ll cover £6,000 of gains before you need to pay tax. Although you’ll have then used your allowance for the next 12 months.

If you’ve made a bad investment then it may help cut your tax bill. Any investments or assets you’ve had to sell at a loss can be subtracted from your profits to work out your capital gains. HMRC allows you to use losses from previous tax years, but you have to make a claim no later than 4 years after the end of the tax year in which you made the loss and can only use them once.

Before you begin investing in a GIA, we’d recommend speaking to a financial adviser, so you can be sure it’s right choice for you – there will usually be a charge for advice.