Who can take out a gross General Investment Account (GIA)?

A list of individuals or entities entitled to receive interest payments gross from gross funds is shown in Sections 933, 934 and 936 of the Income Tax Act 2007.

These individuals or entities are broadly:

  • UK resident charities.
  • A local authority or public office.
  • The trustees or scheme administrator of registered pension schemes for example, SIPPs and SSASs .
  • UK resident limited companies .The gross GIA can also be held within an offshore bond wrapper. To achieve a gross return, however, gross share classes will have to be selected by the policyholder.


By investing in a gross asset class, a company will have a cash flow benefit.  It won’t suffer an immediate tax deduction on the interest payments, at the point when it receives the cash. Instead, the tax will fall due to be paid 9 months and a day after the end of the accounting period.

Pension schemes and charities can enjoy the administrative benefit of not having to go through the process of reclaiming tax on interest received.

Pension trustees shouldn’t be confused with trustees of other types of trusts.  These trustees would generally be liable for tax on the income and capital gains on a general investment account, so a gross GIA wouldn’t generally be a suitable option.