Current Portfolio Values (£)
Target Allocation (%)
Settings
Rebalancing Analysis
Frequently Asked Questions
How often should I rebalance my UK investment portfolio?
Most UK financial advisers recommend rebalancing once or twice a year, or whenever an asset class drifts more than 5% from its target. Annual rebalancing inside an ISA or SIPP avoids triggering Capital Gains Tax.
Does rebalancing inside an ISA trigger Capital Gains Tax?
No. Buying and selling funds inside a Stocks and Shares ISA or SIPP is completely sheltered from Capital Gains Tax and Income Tax, making these wrappers ideal for regular rebalancing.
What is portfolio drift and why does it matter?
Portfolio drift occurs when asset prices move at different rates, pushing your actual allocation away from your target. A portfolio targeting 60% equities may drift to 70% after a strong stock market year, increasing your risk exposure beyond your original intention.
Should I sell assets or redirect new contributions to rebalance?
Redirecting new contributions towards underweight assets is the most tax-efficient rebalancing method for taxable accounts as it avoids realising gains. For ISA and SIPP accounts, selling overweight assets is equally tax-efficient.
What transaction costs should I expect when rebalancing?
Typical UK platform dealing charges range from £0 (Vanguard, iWeb for funds) to £11.95 per trade (Hargreaves Lansdown). Index fund switching via regular investment plans is often free. This calculator estimates costs based on a 0.1% default rate; adjust to your platform's actual fees.