CGT on ETF

Dear HMRC Team, I am thinking of investing in an ETF (exchange traded fund), using a UK broker , who are registered with the FCA. If I purchase the ETF (and this is not using an ISA), at what point would I have to pay capital gains tax? Is it when I sell any part of the ETF? Is there a tax-free allowance? If I do not sell the ETF for say 5 years, does that mean I don't have to pay tax during those 5 years? Also, if teh ETF pays dividends, how are these handled from a tax perspective? Many thanks

[Company details removed - Admin]

Hi
Capital gains tax only arises when an asset is disposed of for more than it cost to buy (including buying and selling costs).  
Have a look at the guidance on tax when you sell shares. 
Tax when you sell shares
Thankyou.

Apologies, I have looked at the link but I am still unclear. So if I am buying an ETF, is it only when I sell an ETF that I am invested in, that I have to pay CGT? If so, what would be the amount of tax I would have to pay? Thank you.

Hi,

Without knowing exactly what the investment is, it is difficult to say but it sounds like you would still be within the chargeable events regime if you still has the same policy with, perhaps underlying investments within it. You would need to consider if anything you do, changes the policy or creates a chargeable event. You can see guidance on chargeable event gains here:

HS321 Gains on foreign life insurance policies (2023)

IPTM3400 - When events occur: general

Your insurance company would be able to confirm if this is the case so you should check with them. If not then you would consider it when the policy matures. You would get a chargeable event certificate in any event. 

Thank you