What is a Dealing account?



A Dealing account is an online account where you can buy and sell (deal) investments. This can also be known as a general investment account (GIA) or share dealing account.

The money you pay in can be invested into a wide range of assets, such as funds, shares, investment trusts and more. You can do this in lump sums, or set up regular investment instructions for smaller amounts, depending on your chosen strategy.

A Dealing account is a flexible way to build your investment portfolio, especially if you’ve used up your ISA and pension allowances. You can pay in as much or as often as you like and access your money without restriction. But keep in mind that the investments you buy can go down as well as up in value, particularly over the shorter term.

What’s the difference between a Dealing account and
an ISA?

Put simply, the differences come down to two things – tax and flexibility.

An individual savings account (ISA) is a tax-free account, so any money you make from the investments you buy and sell in it, such as growth and/or income, is free from tax. In exchange for these tax perks, there’s a limit on what you can pay into ISAs each tax year.

Investing in a Dealing account comes without such limits and is therefore more flexible. But any gains or income you make from investing could be subject to taxes, which are explained in more detail below.

You can hold your own Dealing account, or jointly with another individual. AJ Bell also let you open Dealing accounts for children, as well as for registered pension schemes or UK limited companies.

ISA vs Dealing account: which is better for you?

Do you pay tax in a Dealing account?

Yes, you do. There are two types of tax to be aware of: income tax and capital gains tax (CGT).

Income tax

Many investments pay out income. For shares, this will be dividends, but other types of investments (for example bonds or bond funds) will pay out income as interest.

The tax you’ll pay and any allowances will depend on the type of income.

Dividend income

Everyone gets a tax-free allowance of £1,000 a year.

(Reducing to £500 from 6 April 2024).

Above your allowance, your dividend will be taxed at the following rates:
Basic rate
Higher rate
Additional rate
8.75%
33.75%
39.35%

Interest income

Your tax-free allowance depends on your other income.

Basic rate
Higher rate
Additional rate taxpayers
Taxpayers get £1,000
Taxpayers get £500
No allowance


Above your allowance, the rate of tax on the interest will depend on your other income.

Tax is not deducted automatically from dividends or interest, so if the income is over your tax-free allowance(s), you’ll need to complete an HMRC self-assessment tax return.

Capital gains tax

If you live in the UK, you’ll not pay tax on any gains you make on your investments until you sell them and ‘realise’ the gain. You get a tax-free allowance for gains you make each year – in 2023/24, the capital gains tax allowance is £6,000, but it to falls to £3,000 from 6 April 2024 onwards. This means, currently, you can make gains or profit of £6,000 before you pay tax. The rate of tax you pay on gains above this amount depends on your total taxable income. Find out more about capital gains tax here.

Your Dealing account provider, such as AJ Bell, should send you an annual statement that shows any gains and losses, as well as details of income generated by your investments. This’ll help you with your tax return if you need to complete one.

Remember, your tax treatment depends on your personal circumstances, and tax rules can change.

We'll help you get investing

For over 25 years, AJ Bell has made investing simple and affordable. We’re a 5x Which? Recommended Provider, with an award-winning range of accounts.

Learn more about us

AJ Bell Which

Can we help?

If you’d like more information about AJ Bell’s accounts and services, get in touch with our friendly customer services team - we’re here to help.